FIs Closed: The Cowlitz Bank, Longview, Washington, USA
On Friday, July 30, 2010, The Cowlitz Bank, Longview, Washington, (Cowlitz Bank) including those branches operating under the name Bay Bank (a Division of The Cowlitz Bank), was closed by the Washington Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Olympia, Washington, to assume all of the deposits of The Cowlitz Bank.
The nine branches of The Cowlitz Bank, including the two branches operating in Oregon, and three branches operating in Washington under the name Bay Bank, a division of The Cowlitz Bank, reopened on Saturday during normal banking hours as branches of Heritage Bank.
As of31 March, 2010, The Cowlitz Bank had approximately USD529.3 million in total assets and USD513.9 million in total deposits.
Heritage Bank paid the FDIC a premium of 1.0 percent for the deposits of The Cowlitz Bank.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD68.9 million.
The Cowlitz Bank is the 107th FDIC-insured institution to fail in the nation this year and the eighth in Washington.
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