New Bank Failures: Week of May 11
One bank failed for the week of May 11, Washington state's Westsound Bank, bringing the total number of institutions shuttered by regulators this year to 33.
All 58 bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive bank failure map:
Bremerton, Wash.-based Westsound, a subsidiary of WSB Financial Group (WSFG), had $334.6 million in total assets and $304.5 million in deposits. The Federal Deposit Insurance Corp. immediately entered into a purchase-and-assumption agreement with Kitsap Bank of Port Orchard, Wash., under which Kitsap will take over all of Westsound's retail deposits and branches. Kitsap also purchased $49.3 million of assets.Kitsap chose not to take over about $9.4 million in brokered deposits. The FDIC will pay the brokers directly and instructed that group of depositors to contact their brokers. The FDIC retained the remaining assets for later disposition. The FDIC's estimated cost to its insurance fund is $108 million. The agency's estimated total cost to its deposit insurance fund for the bank failures during the first quarter of 2009 was $2.3 billion. Westsound was the third Washington bank or thrift to fail since the start of 2008. On Jan. 16, Bank of Clark County failed and its branches and deposits were acquired by Umpqua Holdings Corp. (UMPQ). Seattle-based Washington Mutual was closed by regulators in September, with branches and deposits taken over by JPMorgan Chase (JPM). TheStreet.com recently published a preliminary list of undercapitalized banks as of March 31. The list likely will be significantly expanded once a complete set of finalized data for all banks and thrifts is available.
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