However, in order to protect the depositors, the FDIC entered into a purchase and assumption agreement with Washington-based Columbia State Bank, to assume all of the deposits of Columbia River Bank.
The 21 branches of Columbia River Bank will reopen as branches of Columbia State Bank. The deposits will continue to be insured by the FDIC. Customers can continue to use their existing branch until they receive notice from Columbia State Bank that it has completed systems changes to allow other Columbia State Bank branches to process their accounts as well.
As of September 30, 2009, Columbia River Bank had approximately $1.1bn in total assets and $1bn in total deposits. Columbia State Bank will pay the FDIC a premium of 1% to assume all of the deposits of Columbia River Bank. In addition to assuming all of the deposits of the failed bank, Columbia State Bank agreed to purchase essentially all of the assets.
The FDIC and Columbia State Bank entered into a loss-share transaction on $697.4m of Columbia River Bank’s assets. Columbia State Bank will share in the losses on the asset pools covered under the loss-share agreement.
