The Washington Department of Financial Institutions (DFI) closed Horizon Bank January 8 after citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Horizon Bank.
The FDIC immediately entered into a purchase and assumption agreement with Washington Federal, headquartered in Seattle, Washington. Washington Federal will assume all deposits and certain assets of Horizon Bank, except brokered deposits, which will be paid out by the FDIC.
“Horizon’s capital has been depleted by large loan losses,” Brad Williamson, Director of DFI’s Division of Banks explained. “Like many banks across the country, Horizon’s real estate construction and development portfolio has suffered as real estate values have fallen.”
“While we are always disappointed when a bank is unable to continue safe and sound financial operations,” DFI Director Scott Jarvis said, “we are very pleased to see a bank with deep roots in Washington undertaking a whole bank purchase, insuring the deposits and loans of individuals, businesses and public entities throughout Washington.”
Horizon Bank is headquartered in Bellingham and has branches located in Whatcom, Skagit, Snohomish and Pierce counties. As of Sept. 30, 2009, Horizon Bank had total assets of $1,299,986,000 and total deposits of $1,174,360,000.
Horizon Bank customers seeking more information about the closure can visit www.fdic.gov
or call Washington Federal toll-free at 800/955-9194.