American Marine Bank closed all 11 of its branches and one home loan center on Friday, Jan. 29, absorbed by Columbia State Bank of Tacoma.
Sequim's branch inside Safeway, 680 W. Washington St., has reopened as Columbia State Bank.
In November, American Marine Bank was placed under tight oversight by state and federal regulators. The bank was to eliminate all assets classified as "loss," reduce substandard assets, and improve lending and collections policies and liquidity.
Senior management failed to implement plans to purge bad loans from the books and reliance on cer-
tain loan categories, such as commercial real estate, according to federal regulators.
As of Sept. 30, 2009, American Marine Bank had about $373.2 million in total assets and $308.5 million in total deposits.
Columbia State Bank will pay the Federal Deposit Insurance Corporation a premium of 1 percent to assume the deposits and assets of American Marine Bank.
The FDIC and Columbia State Bank entered into a loss-share transaction on $255.1 million of American Marine Bank's assets. Columbia State Bank will share in the losses on the asset
pools covered under the loss-share agreement that is projected to maximize returns on the assets covered by keeping them in the private sector. It also is expected to minimize disruptions for loan customers.
American Marine Bank is the 15th FDIC-insured institution to fail in the nation this year and the third in Washington. On Jan. 22, Evergreen Bank closed in Washington.
Depositors at American Marine Bank now are depositors at Columbia State Bank. Customer deposits continue to be insured by the FDIC, so customers need not change their bank to retain deposit insurance coverage.
Customers are encouraged to use their existing branch until they receive notice from Columbia State Bank that it has completed changes to allow other Columbia State Bank branches to process their accounts.
Loan customers should make their payments as usual.
Individual depositors are insured by the FDIC up to $250,000 through Dec. 31, 2013, when the amount returns to $100,000.
Non-interest-bearing transaction accounts and interest-bearing accounts that cannot earn more than 0.50 percent interest are guaranteed by the FDIC regardless of amount under the Temporary Liquidity Guarantee Program through June 30, 2010.
The new Sequim Columbia State Bank in Safeway is open 10 a.m.-5 p.m. Mondays-Thursdays and 10 a.m.-6 p.m. Fridays.
The Sequim Gazette is located at 147 W. Washington Street in Sequim.
Business hours are Monday through Friday from 8:30 a.m. to 5:00 p.m. Phone 360-683-3311, or toll free at 800-829-5810. FAX 360-683-6670.
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