Government regulators shut down six banks on Friday, Jan. 29, including American Marine Bank, headquartered in Bainbridge Island.
American Marine was shut down by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insur-ance Corp. as receiver. The FDIC then entered into an agreement to have Columbia State Bank of Tacoma take over the deposits and 11 branches.
American Marine had branches in Kitsap, Clallam, Jefferson, Mason and King counties, all of which will reopen on Saturday, Jan. 30 as Columbia State Bank.
The estimated cost to the FDIC is $58.9 million.
Here is a press release from Washington State DFI:
Olympia – The Washington State Department of Financial Institutions (DFI) closed American Marine Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of American Marine Bank.
The FDIC immediately entered into a purchase and assumption agreement with Columbia State Bank, headquartered in Tacoma, Wash. Columbia State Bank will assume all deposits and certain assets of American Marine Bank, except certain brokered deposits, which will be paid out by the FDIC.
“American Marine’s capital has been depleted by large loan losses and resultant loan loss reserve provisions,” Brad Williamson, Director of DFI’s Division of Banks explained.
“We are always disappointed when a bank is unable to continue safe and sound financial operations,” DFI Director Scott Jarvis said. “We are pleased, however, to see the bank acquired by Washington State chartered Columbia State Bank. This is a good outcome for bank depositors and borrowers.”
American Marine Bank, headquartered in Bainbridge Island, Wash. has branches located in Kitsap, Clallam, Jefferson, Mason and King counties. All will be assumed by Columbia State Bank. The main office and all of American Marine’s 11 branches will reopen on Saturday, Jan. 30 for those with Saturday hours and on Monday, Feb. 1 for all locations as branches of Columbia State Bank.
“We warmly welcome former American Marine Bank customers into our network of 73 Columbia State Bank Branches in Washington and Oregon,” said Melanie J. Dressel, President and Chief Executive Officer, Columbia Banking System. “While branches will open under new ownership, deposits are safe, accessible and remain FDIC insured to the maximum provided by law. We anticipate a smooth transition, and look forward to working with the American Marine Team, who have served their community so well.”
Throughout the weekend and transition, American Marine 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 also will remain available.
As of Sept. 30, 2009, American Marine Bank had total assets of $361,356,000 and total deposits of $308,452,000.
American Marine Bank customers seeking more information about the closure should visit www.dfi.wa.gov/banks/americanmarine.htm or www.fdic.gov/news/news/press/2010/index.html http://www.columbiabank.com, or www.americanmarinebank.com.
For more information about deposit insurance for Washington banks and credit unions, visit www.dfi.wa.gov/consumers/deposits.htm. For details about FDIC coverage and requirements, visit www.fdic.gov or call toll-free 1.877.ASK.FDIC.
DFI recently released FAQs for bank business loan customers in turbulent times at http://dfi.wa.gov/banks/business-loan-faqs.htm.