Daily banking business for the residents of Boise, Idaho will continue as usual but under a slightly different banner: Syringa Bank and its six branches were shuttered over the weekend, leading to an FDIC-insured handover to Sunwest Bank from Irvine, California.
Syringa Bank was the most recently closed bank in Idaho since April 24, 2009, when First Bank of Idaho was closed. Syringa Bank was closed by the Idaho Department of Finance, prompting the FDIC-led purchase and assumption agreement with Sunwest.
As of September 30, 2013, Syringa Bank held approximately $153.4 million in total assets and $145.1 million in total deposits. Sunwest will pay a premium of .75 percent to FDIC to acquire the deposits of the recently closed Syringa Bank. Additionally, Sunwest agreed to purchase all of the failed bank’s assets.
The bank’s closure is expected to cost the Deposit Insurance Fund (DIF) approximately $4.5 million.
Bank closures have been steadily declining in recent years. In 2011, the FDIC reported 92 bank failures—that number was halved in 2012 to 51. Last year proved to be another downward trend in bank closures with 24 reported collapses.
Syringa Bank of is the third bank closure of 2014 and the first this year in Idaho.