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Breaking from the typical mass shutdowns that have characterized nearly every Friday evening for the past year and a half, regulators this weekend closed down only one financial institution â€" ""Washington First International Bank"":http://www.wfib.com in Seattle.
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The closing brings the number of FDIC-insured bank failures for the year to 82. That's more than double the year-to-date seizures at this time in 2009, as the lingering effects of the nation's housing collapse and economic downturn continue to take their toll.
Washington First International operated four branches, with $441.4 million in deposits and assets of $520.9 million. The FDIC brokered a deal with ""East West Bank"":http://www.EastWestBank.com in Pasadena, California to take over the failed institution.
East West Bank agreed to pay the FDIC a premium of 0.5 percent for Washington First's deposits, and will purchase approximately $501 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and East West Bank entered into a loss-share transaction on $418.8 million of the acquired assets.
Washington First International's failure is expected to cost the FDIC an estimated $158.4 million. It is the seventh bank in Washington state to go under this year.
According to the bank's regulator, the Washington Department of Financial Institutions, Washington First was unsuccessful in raising its capital levels, which coupled with continued loan losses, led to its seizure.
The bank was heavily concentrated in lending for commercial real estate land acquisition and construction.
