Archive for September, 2009
It looks like the 92nd bank closure of the year will be from Washington state. It’s Venture Bank, based in Lacey. Here is a press release from Washington State Department of Financial Institutions:
Olympia – The Washington Department of Financial Institutions (DFI) closed Venture Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Venture Bank.
The FDIC immediately entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company of Raleigh, N.C. First-Citizens Bank & Trust Company will assume all deposits and assets of Venture Bank, except brokered deposits, which will be paid out by the FDIC.
“Venture’s capital has been depleted by large loan and investment losses,” Brad Williamson, Director of DFI’s Division of Banks explained. “Like many banks across the country, Venture’s real estate construction and development portfolio has suffered as real estate values have fallen.”
“However, Venture’s demise was hastened by very large losses associated with FNMA/Freddie Mac preferred stock and Collateralized Debt Obligations,” Williamson continued. “The combination of loan and investment losses created capital problems that couldn’t be overcome without an immediate capital infusion, which hasn’t been forthcoming.”
“While we are disappointed in Venture Bank’s inability to continue safe and sound financial operations,” DFI Director Scott Jarvis said, “we are pleased to see the negotiation of a whole bank purchase, insuring the deposits and loans of individuals, businesses and public entities throughout Washington. The only change customers should see is a new name and logo, services will continue as before.”
Venture Bank, headquartered in Lacey, Wash. with administrative offices in DuPont, Wash., has branches located throughout the Puget Sound region, from Thurston, Lewis and Pierce counties up into King County. All will be assumed by First-Citizens Bank & Trust Company. Branches that provide drive-up services on Saturday will reopen on Saturday with normal business hours as branches of First-Citizens Bank & Trust Company. The corporate office and all of Venture’s 18 branches will reopen on Monday, Sept. 14 as branches of First-Citizens Bank & Trust Company.
Throughout the weekend and transition, Venture Bank customers can access their funds by writing checks or using ATM or debit cards. Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services will remain available.
As of June 30, 2009, Venture Bank had total assets of $991.4 million and total deposits of $902.7 million.
Here’s an update on three Bellingham businesses on the move or have recently moved:
- Harris Avenue Music is moving to 1427 N. State St., north from its current location at 1138 N. State St. According to the sign on the window, the company will also be changing its name to Bellingham Music and be in its new location by Nov. 1. They store sells a variety of musical instruments and sheet music while also offering lessons.
- INTEGRA, a condominium association management company, is moving from 1321 King St. to 1704 Iowa St. The company expects to be in its new space by Monday, Sept. 21. According to a company press release, it has outgrown its current space. The new space will nearly double the company’s square footage.
- Sheila King of King Therapeutic Massage has moved her practice to 3120 Squalicum Parkway, Suite 2, near St. Joseph Hospital. King, a licensed massage therapist since 2003, said in a press release that the new space offers easier access and parking for clients. For details, call 927-2727.
It’s time for the Friday afternoon bank closures, and so far this afternoon the FDIC has closed two, making it 91 for 2009. I’ll update with new posts if there are any after 5 p.m. Here are the details of the two closures:
No. 90: Corus Bank of Chicago was closed, then taken over by MB Financial of Chicago. Cost to the FDIC: $1.7 billion.
No. 91: Brickwell Community Bank of Woodbury, Minn., was closed, then taken over by CorTrust Bank of Mitchell, S.D. Cost to the FDIC: $22 million.
Business Bank, which has offices in Whatcom and Skagit counties, will be closing its Lynden branch on Thursday, Oct. 15.
The branch at 8082 Guide Meridian is being closed because it failed to garner enough deposits, said Rob Woods, Chief Financial Officer for Business Bank. The Lynden branch will impact five employees; one has been offered a position within the company, Woods said. A full-service branch in Lynden opened in April 2008.
Business Bank has a branch in Bellingham at 2417 Meridian St. and branches in Burlington and Mount Vernon. Business Bank opened in 2005. As of June 30, 2008, the bank had $102 million in deposits.
Sterling Life Insurance Company, which employs more than 700 people in Bellingham, is making a few changes. According to communications coordinator Liz Bardon, Sterling has consolidated some sales offices outside the area in order to be more efficient handling customers nationwide. In an e-mail release, she said “This consolidation also affects a small number of Bellingham employees” but didn’t elaborate as to how many.
In the past two years, the company has been growing tremendously, adding about 270 jobs in Bellingham.
Looks like this is it for the holiday weekend…
No. 88 Platinum Community Bank in Rolling Meadows, Ill. was shut down with no one taking it over. Cost to the FDIC: $114.3 million.
No. 89: First State Bank in Flagstaff, Ariz., was closed, then taken over by SunWest Bank in Tustin, Calif. Cost to the FDIC: $47 million.
In our weekly update of banks getting shut down by the FDIC, three made the list as of Friday afternoon. I’ll update with a new post if there are other bank closures. If there’s any West Coast bank closures, they usually happen at the end of the business day (or after 6 p.m.). Here are the details on the three shut (making it 87 banks closed in 2009):
No. 85 First Bank of Kansas City was closed, then taken over by Great American Bank of De Soto, Kansas. Cost to the FDIC: $6 million.
No. 86: InBank of Oak Forest, Ill. was closed, then taken over by MB Financial Bank of Chicago. Cost to the FDIC: $66 million.
No. 87: Vantas Bank of Sioux City, Iowa, was closed, then taken over by Great Southern Bank of Springfield, Missouri. Cost to the FDIC: $168 million.
Horizon Bank announced its new COO, replacing Dennis Joines, who left in April. Here is the company’s press release:
BELLINGHAM, Wash., Sept. 3, 2009 (GLOBE NEWSWIRE) — Horizon Financial Corp. (Nasdaq:HRZB) (“Horizon”), the bank holding company for Horizon Bank, announced today that Robert A. Pingle has joined the Bank as Chief Operating Officer.
“We are delighted and privileged to have Bob join our executive team. With over 40 years in banking, Bob brings a wealth of experience and a proven track record of success,” said Rich Jacobson, President and Chief Executive Officer. “His experience in management and bank operations will provide additional capabilities in our ongoing efforts to provide an appropriate product mix and superior service to our customers.”
Formerly with Town Center Bank in Portland, Oregon, Pingle spent 10 years as Executive Vice President and Chief Operating Officer, where his responsibilities were diverse and included all facets of bank operations. Pingle was previously with Pacific One Bank, and served as their Senior Vice President and Chief Operations Officer overseeing the bank operations, including the centralized support departments. He also held several progressively responsible positions with West One Bank and was their Senior Vice President/ Operations Administration. Pingle began his banking career as Vice President and Cashier at Mount Hood Security Bank at Gresham, Oregon.
Graduating from Phoenix College, Arizona, Pingle earned an Associates of Arts Degree in Business. He also attended the School of Bank Administration at the University of Wisconsin, and Western Compliance School at the University of Nevada to further his banking career.
Triad Service Electric appears to have closed after 25 years of business. I didn’t get a chance to talk to the owners, but a message on the company’s voicemail said they found it necessary to terminate operatoins as of Friday, Aug. 28.
Triad was located at 2020 Humboldt St.
The Bellingham/Whatcom Chamber of Commerce & Industry will be hosting two free workshops, titled “Embrace the New Marketplace – How Local Businesses Will Win in a Dramatically Changing Economy” on Wednesday, Sept. 2 (there’s a morning and afternoon session, each lasting about 2 hours). If interested, give them a call at 734-1330 or go to the chamber’s web site at www.bellingham.com.