VANCOUVER, Wash. – Regulators closed the Bank of Clark County on Friday evening because of inadequate capital and liquidity.
Regulators also shut down a small bank in Illinois.
The Federal Deposit Insurance Corp. was appointed receiver of the banks. They were the first two federally insured banks to fail and be shuttered by regulators this year amid the pressures of tumbling home prices, rising mortgage foreclosures and tighter credit.
Bank of Clark County had $446.5 million in assets and $366.5 million in deposits as of Jan. 13.
Umpqua Bank, based in Roseburg, Ore., will assume the insured deposits of Bank of Clark County, the Washington state Department of Financial Institutions said. As of Jan. 16, there were about $39.3 million in uninsured deposits that potentially exceeded the insurance limits, according to the FDIC.
Bank of Clark County’s main office and single branch will reopen Tuesday as offices of Umpqua Bank, which also will buy $30.4 million of Bank of Clark County’s assets.
“It is regrettable to have to take such actions, but DFI did so to ensure the soundness and stability of banking in Washington state,” DFI Director of Banks Brad Williamson said in a statement. “This unfortunate event is the result of a combination of significant deterioration in loan portfolios and the overall economic instability we are experiencing today in our country.”
State officials said the closure is the first such state action since 1993, when officials closed Emerald City Bank of Seattle.
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