Bank of Whitman branches are bought
A sign posted at Warden's Bank of Whitman directs customers to an Othello branch of Columbia State Bank. The Bank of Whitman was recently sold and became Columbia State Bank.
MOSES LAKE - The Colfax-based Bank of Whitman was sold because big loan losses prevented it from staying open.
In Grant County, the Warden, Royal City and Mattawa branches were shuttered and customer accounts were transferred to the new owner, the Tacoma-based Columbia State Bank.
In Othello, a Bank of Whitman branch became a Columbia State Bank branch, making it the closest location for former Bank of Whitman customers in Mattawa, Royal City and Warden, according to information available on the Washington Department of Financial Institutions (DFI) website Monday.
"Large loan losses made it impossible for Bank of Whitman to continue," stated Richard M. Riccobono, the DFI's division of banks director. "Bank management was unable to raise sufficient capital to remain viable. It hurts to lose an institution like the Bank of Whitman because they extended services to our state's smaller communities."
He told the Columbia Basin Herald he wasn't sure about the number of jobs impacted at the Mattawa, Warden and Royal City branches.
No one answered the phone at the Grant County branches. Instead, a recording recommended customers call the FDIC at 1-800-881-7816.
At the Warden branch, the front doors were locked Monday, but an FDIC employee and state patrolman came outside to speak to a Columbia Basin Herald reporter.
Barbara Brunson, an FDIC ombudsman, said customers asked if their money was safe and were concerned about the driving distances.
"Everyone's money is safe," she said. "You can continue to use your debit cards, checks, direct deposits and (make) auto payments."
The FDIC will be at the closed branches for at least 21 days to assist customers who are retrieving the contents of their safety deposit boxes.
Customers with safety deposit boxes are encouraged to call and make appointments, she said.
THE FDIC is notifying customers about their accounts being transferred to Columbia State Bank and provides interpreters for Spanish-speaking customers, according to the FDIC.
The FDIC also intends to contact businesses and tell them there are sufficient funds to honor Bank of Whitman checks.
Warden Mayor Roldan Capetillo said he and his wife were Bank of Whitman customers.
He received no notices about the bank's closure.
"It came as a big surprise to us," Capetillo commented. "My wife and I are thinking about where to bank next. I know a lot of people bank there. It's an inconvenience I guess, but we still have a bank here."
One woman worked at the Warden branch, he said.
On June 30, the Bank of Whitman had $549 million in total assets and $516 million in total deposits.
Columbia State Bank reported $5.43 billion in total assets and $3.58 billion in total deposits.
The sale of Whitman Bank makes it the third bank to fail in Washington state this year, said Riccobono.
There have been 17 bank closures in the state since 2008, said Riccobono.
Nationwide, 63 banks closed this year, with 157 banks failing in 2010, according to the FDIC.
For more information, visit www.fdic.gov/bank/individual/failed/whitman_branches_closed.html, www.dfi.wa.gov/banks/bankofwhitman.htm, www.bankofwhitman.com or www.columbiabank.com.