FIs Closed: Western National Bank, Phoenix, Arizona, USA
On Friday, 16 December, 2011, Western National Bank, Phoenix, AZ was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Washington Federal, Seattle, Washington, to assume all of the deposits of Western National Bank.
The three branches of Western National Bank have re-opened as branches of Washington Federal.
As of 30 September, 2011, Western National Bank had approximately USD162.9 million in total assets and USD144.5 million in total deposits.
In addition to assuming all of the deposits of the failed bank, Washington Federal agreed to purchase essentially all of the assets.
No premium was paid.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD37.6 million. Compared to other alternatives,
Western National Bank is the 92nd FDIC-insured institution to fail in the USA this year and the third in Arizona.
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