Here is a the press release from the FDIC:
Evergreen Bank Seattle, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume all of the deposits of Evergreen Bank.
The seven branches of Evergreen Bank will reopen on Monday as branches of Umpqua Bank. Depositors of Evergreen Bank will automatically become depositors of Umpqua Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Umpqua Bank that it has completed systems changes to allow other Umpqua Bank branches to process their accounts as well.
This evening and over the weekend, depositors of Evergreen Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of September 30, 2009, Evergreen Bank had approximately $488.5 million in total assets and $439.4 million in total deposits. Umpqua Bank will pay the FDIC a premium of 1.0 percent to assume all of the deposits of Evergreen Bank. In addition to assuming all of the deposits of the failed bank, Umpqua Bank agreed to purchase essentially all of the assets.
The FDIC and Umpqua Bank entered into a loss-share transaction on $379.5 million of Evergreen Bank’s assets. Umpqua Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-528-6215. The phone number will be operational this evening until 9:00 p.m., Pacific Standard Time (PST); on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from noon to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/evergreen-wa.html.
As part of this transaction, the FDIC will acquire a cash participant instrument. This instrument serves as additional consideration for the transaction.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $64.2 million. Umpqua Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to all alternatives. Evergreen Bank is the eighth FDIC-insured institution to fail in the nation this year, and the second in Washington. The last FDIC-insured institution closed in the state was Horizon Bank, Bellingham, on January 8, 2010.
More details from the Washington Department of Financial Institutions:
The Washington Department of Financial Institutions (DFI) closed Evergreen Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Evergreen Bank.
The FDIC immediately entered into a purchase and assumption agreement with Umpqua Bank, headquartered in Roseburg, Oregon. Umpqua Bank will assume all deposits and certain assets of Evergreen Bank, except certain brokered deposits, which will be paid out by the FDIC.
“Evergreen’s capital has been depleted by large loan losses,” Brad Williamson, Director of DFI’s Division of Banks explained. “Like many banks across the state and country, Evergreen’s real estate construction and development portfolio has suffered tremendously as real estate values have fallen.”
“We are always disappointed when a bank is unable to continue safe and sound financial operations,” DFI Director Scott Jarvis said. “We are very pleased, however, to see the bank acquired by a northwest bank as a whole bank purchase. This is a good outcome for bank depositors and borrowers.”
“Umpqua Bank has always been committed to the financial health of the communities we serve,” said Ray Davis, Umpqua Holdings Corporation president and CEO. “Umpqua is well positioned to assume the deposits and loans of Evergreen Bank and we will work quickly to make this transition as smooth as possible for customers and employees.”
Evergreen Bank, headquartered in Seattle, Wash. has branches located in King and Snohomish counties. All will be assumed by Umpqua Bank. The main office and all of Evergreen’s seven branches will reopen on Monday, Jan. 25 as branches of Umpqua Bank.
Throughout the weekend and transition, Evergreen 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, Evergreen Bank had total assets of $481,701,000 and total deposits of $438,978,000.