Financial Shutdown Report - May 27, 2011

Time once again for the weekly Financial Shutdown report. However, this is a holiday weekend. Therefore no banks were seized by the government. Have a great and safe Memorial Day weekend.

Update: Just received notification (Press Release) from the Feds that they did make a rare bank seizure on a holiday weekend. Here are the details:

First Heritage Bank, Snohomish, Washington, was closed today by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of First Heritage Bank.

Due to the Memorial Day holiday, the five branches of First Heritage Bank will reopen on Tuesday as branches of Columbia State Bank. Depositors of First Heritage Bank will automatically become depositors of Columbia State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First Heritage Bank should 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.

Customers with questions about today's transaction should call the FDIC toll-free at 1-800-815-0286. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties also can visit the FDIC's Web site.





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