Horizon Bank in Bellingham, Wash., was closed Friday by the Washington State Department of Financial Institutions. The Federal Deposit Insurance Corp. (FDIC), acting as receiver, entered into a purchase-and-assumption agreement with Seattle-based Washington Federal Savings and Loan Association to assume all of the deposits of Horizon Bank.
As of Sept. 30, 2009, Horizon Bank had approximately $1.3 billion in total assets and $1.1 billion in total deposits. Washington Federal Savings and Loan Association did not pay the FDIC a premium to assume all the deposits of Horizon Bank. In addition to assuming all of the deposits of the failed bank, Washington Federal Savings and Loan Association agreed to purchase essentially all of the assets of the failed bank.
The FDIC and Washington Federal Savings and Loan Association entered into a loss-share transaction on approximately $1 billion of Horizon Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $539.1 million. The last FDIC-insured institution closed in the state was Venture Bank, which was shuttered on Sept. 11, 2009.
SOURCE: Federal Deposit Insurance Corp.