SEATTLE (AP) — A three-branch bank in Skagit County has become the first bank to close in Washington this year.
The Seattle Times reports that state regulators shut down Summit Bank last Friday, and that Tacoma-based Columbia State Bank will take over the three branches under an agreement with the Federal Deposit Insurance Corp.
Summit’s closure comes despite an effort by its directors to save it by investing $1.5 million a year ago to raise capital levels. The bank’s equity capital plummeted from $14.9 million in the first quarter of 2010 to $2.7 million this year. It reported a net loss of $3.5 million in the first quarter.
Its total assets as of March 31 were $142.7 million and $131.6 million in total deposits.
The FDIC says it expected the bank’s failure would cost the deposit insurance fund $15.7 million.
