North County Bank of Arlington was shut down by government regulators and taken over by Whidbey Island Bank.
The Arlington bank had four branches, none of which were in Whatcom County. Citing inadequate capital and severe loan losses, the Washington Department of Financial Institutions stepped in on Friday, Sept. 24 to close the bank and turn it over to the Federal Deposit Insurance Corp. The FDIC entered into an agreement with Whidbey Island Bank to assume a majority of deposits.
“North County Bank’s capital has been eroded by large loan losses associated with land development and construction lending,” said Brad Williamson, director of DFI’s Division of Banks, in a press release.
Throughout the weekend and during the transition, North County Bank customers can access funds. The branches in Arlington, Lake Stevens, Marysville and Everett will reopen Monday as branches of Whidbey Island Bank.
This is the 127th bank shut down by government regulators in 2010. The estimated cost to the FDIC for this closure is $72.8 million.
As of the end of June, North County Bank had $288.8 million in total assets.