FDIC closes University Place bank; first failure of ‘13

WASHINGTON — U.S. regulators on Friday closed a small lender in Washington state, making it the first bank failure of 2013 following 51 closures last year.

The Federal Deposit Insurance Corp. seized Westside Community Bank, based in University Place and Sunwest Bank, based in Irvine, Calif., agreed to assume all of the failed lender’s deposits and buy essentially all of its assets.

Westside Community Bank had $97.7 million in assets and $96.5 million in deposits as of Sept. 30. Its failure is expected to cost the deposit insurance fund $20.3 million.

U.S. bank closures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession.

In 2007, just three banks went under. That number jumped to 25 in 2008, after the meltdown, and ballooned to 140 in 2009.

In 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. The FDIC has said 2010 likely was the high-water mark for bank failures from the recession. They declined to a total of 92 in 2011.

Last year’s bank failures trickled to 51, but that’s still more than normal.

In a strong economy, an average of only four or five banks close annually. The sharply reduced pace of closings shows sustained improvement.

From 2008 through 2011, bank failures cost the deposit insurance fund an estimated $88 billion, and the fund fell into the red in 2009. But with failures slowing, the fund’s balance turned positive in the second quarter of 2011. By Sept. 30, it stood at $25.2 billion, up from $22.7 billion at the end of June.

The FDIC expects bank failures from 2012 through 2016 to cost $10 billion.

More in Herald Business Journal

Disney buying large part of 21st Century Fox in $52.4B deal

Before the buyout, 21st Century Fox will spin off the Fox network, stations and cable channels.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

FCC votes to repeal its net neutrality rules

83 percent of Americans — including3 out of 4 Republicans — opposed the plan.

Commentary: GM, Boeing fight a war of words over Mars

Boeing is strongly signaling how crucial deep-space exploration is to its future.

Angel of the Winds pays $3.4M for Everett arena naming rights

The casino replaces Xfinity as the lead sponsor for the publicly owned downtown Everett events center.

Delta orders 100 Airbus A321neo jets valued at $12.7 billion

Boeing had hoped to land the deal, offering comparable 737s.

Tulalips break ground on new Quil Ceda Creek Casino Hotel

A 150-room hotel was added to what is now a $140 million complex expected to open in spring 2019.

What can be learned from the optimism of Churchill, Elon Musk

A new movie, “The Dark Years,” depicts Winston Churchill during the perilous… Continue reading

Providence Hospital in Everett at sunset Monday night. Officials Providence St. Joseph Health Ascension Health reportedly are discussing a merger that would create a chain of hospitals, including Providence Regional Medical Center Everett, plus clinics and medical care centers in 26 states spanning both coasts. (Kevin Clark / The Daily Herald)
Merger would make Providence part of health care behemoth

Providence St. Joseph Health and Ascension Health are said to be talking. Swedish would also be affected.

Most Read