Business

POSTED: Friday, Sep. 11, 2009

Puget Sound bank shut down

A Washington state bank was shut down Friday, Sept. 11, making it the 92nd U.S. bank failure of 2009.

The Washington Department of Financial Institutions closed Venture Bank, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corp. as receiver of Venture Bank.

The FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company of Raleigh, N.C. First-Citizens Bank & Trust will assume all deposits and assets of Venture Bank, except brokered deposits, which will be paid out by the FDIC. The FDIC estimates the cost to the Deposit Insurance Fund will be $298 million.

Venture Bank, headquartered in Lacey, has 18 branches located throughout the Puget Sound region, from Thurston, Lewis and Pierce counties up into King County. It does not have branches in Whatcom County. The corporate office and all of Venture’s 18 branches will reopen on Monday, Sept. 14, as branches of First-Citizens Bank & Trust Company.

As of June 30, 2009, Venture Bank had total assets of $991.4 million and total deposits of $902.7 million.