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FDIC Announces First 2013 Bank Failure

Washington's Westside Community Bank has the dubious honor of being the first to fall in 2013.


The ""FDIC"":http://www.fdic.gov/ announced that the ""Washington State Department of Financial Institutions"":http://www.dfi.wa.gov/ shuttered Westside on Friday. The bank's two branches are reopening as branches of Irvine, California's ""Sunwest Bank"":https://www.sunwestbank.com/index_westside.aspx.

According to the FDIC, Sunwest Bank is assuming all of Westside's estimated $96.5 million (as of September 30, 2012) in deposits. Sunwest also agreed to purchase essentially all of the closed bank's $97.7 million in assets.

The FDIC estimates Westside's closure cost the Deposit Insurance Fund about $20.3 million.

While Westside is the first bank to collapse in 2013, it is also Washington's first failure in more than a year. The last FDIC-insured institution to close in the state was the Bank of Whitman in August 2011.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

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