The Washington State Department of Financial Institutions (DFI) closed American Marine Bank Friday, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of American Marine Bank.
The FDIC immediately entered into a purchase and assumption agreement with Columbia State Bank, headquartered in Tacoma. Columbia State Bank will assume all deposits and certain assets of American Marine Bank, except certain brokered deposits, which will be paid out by the FDIC.
“American Marines capital has been depleted by large loan losses and resultant loan loss reserve provisions,” Brad Williamson, Director of DFI’s Division of Banks explained. As of Sept. 30, American Marine Bank had total assets of $361,356,000 and total deposits of $308,452,000.
“We are always disappointed when a bank is unable to continue safe and sound financial operations,” DFI Director Scott Jarvis said. “We are pleased, however, to see the bank acquired by Washington State chartered Columbia State Bank. This is a good outcome for bank depositors and borrowers.”
American Marine Bank, headquartered in Bainbridge Island, has branches located in Kitsap, Clallam, Jefferson, Mason and King counties. All will be assumed by Columbia State Bank.
“We warmly welcome former American Marine Bank customers into our network of 73 Columbia State Bank Branches in Washington and Oregon,” said Melanie J. Dressel, President and Chief Executive Officer, Columbia Banking System. “While branches will open under new ownership, deposits are safe, accessible and remain FDIC insured to the maximum provided by law. We anticipate a smooth transition, and look forward to working with the American Marine Team, who have served their community so well.”
American Marine Bank customers seeking more information about the closure should visit http://www.dfi.wa.gov/banks/americanmarine.htm or http://www.fdic.gov/news/news/press/2010/index.html or http://www.columbiabank.com or http://www.americanmarinebank.com .