WASHINGTON — State regulators shut two banks on Friday, bringing the year's total failures to 22.
Both closures were relatively small, with just $768.9 million in total assets. The failures are expected to cost the Deposit Insurance Fund $103.1 million.
The largest bank to fail was $717.8 million-asset Rainier Pacific Bank in Tacoma, Wash. All of its $446.2 million of deposits and 14 branches were sold to Umpqua Bank of Roseburg, Ore., which agreed to pay the Federal Deposit Insurance Corp. a 1.04% premium. Umpqua also agreed to buy $670.1 million of the failed bank's assets.
The FDIC and Umpqua entered into a loss-share transaction on $578.1 million of Rainier Pacific's assets. The FDIC estimated the failure will cost $95.2 million.
Earlier in the evening, Nevada state regulators shut down Carson River Community Bank, which held just $51.1 million in assets, at an estimated cost of $7.9 million.
The sole branch of Carson River will reopen Monday as a branch of Reno-based Heritage Bank of Nevada, which agreed to purchase all of the failed bank’s $50 million of deposits.
Heritage Bank did not pay the FDIC a premium to assume the deposits, the agency said. The Nevada bank also agreed to purchase approximately $38 million of Carson River's assets, and entered into a loss-sharing agreement on $28.5 million of those assets.