• Whidbey Island Bank Assumes All of the Deposits of City Bank
  • April 26, 2010 | Author: Darren M. Cooper
  • Law Firm: Alston & Bird LLP - Washington Office
  • Yesterday, the Washington Department of Financial Institutions closed City Bank, headquartered in Lynnwood, Washington, and the FDIC was appointed receiver.  As receiver, the FDIC entered into a purchase and assumption agreement with Whidbey Island Bank, headquartered in Coupeville, Washington, to assume all of the deposits of City Bank.

    As of December 31, 2009, City Bank had approximately $1.13 billion in total assets and $1.02 billion in total deposits. Whidbey Island Bank paid the FDIC a premium of 1.0% to assume the deposits of City Bank, and agreed to purchase approximately $704.1 million of the failed bank's assets. The FDIC and Whidbey Island Bank entered into a loss-share transaction on $455.6 million of City Bank's assets.

    The FDIC estimates that the cost to the Deposit Insurance Fund will be $323.4 million. City Bank is the 50th  FDIC-insured institution to fail in the nation this year and the fifth in Washington.