Washington state bank is shut; 44 failures in 2011

Published:

 

WASHINGTON (AP) -- Regulators have shut down a small bank in Washington state, pushing to 44 the number of U.S. bank failures this year in the wake of a severe recession and mounting troubled loans.

The Federal Deposit Insurance Corp. on Friday seized Snohomish, Wash.-based First Heritage Bank, with $173.5 million in assets and $163.3 million in deposits. Tacoma, Wash.-based Columbia State Bank has agreed to assume the assets and deposits of the failed bank.

In addition, the FDIC and Columbia State Bank have agreed to share losses on $142.2 million of First Heritage Bank's loans and other assets.

The failure of First Heritage Bank is expected to cost the deposit insurance fund $34.9 million.