Bank Transition Continues Into Monday Morning
May 11th, 2009 by Rachel PritchettBy Rachel Pritchett
rpritchett@kitsapsun.com
BREMERTON
All eight branches and the headquarters of the former Westsound Bank opened as Kitsap Bank branches without major incident Monday morning.
State and federal regulators took over the long-troubled Bremerton-based bank after the close of business Friday, citing severe asset problems, significant losses and inadequate capital.
Port Orchard-based Kitsap Bank assumed some assets and announced all the branches will remain open, at least in the short term.
Depositors money is safe, bank officials and regulators said.
At the former bank’s headquarters at Sixth Street and Pacific Avenue on Monday, regulators from the Federal Deposit Insurance Corp. worked behind desks and counters, alongside employees from the former Westsound Bank and Kitsap Bank.
“This was a quiet opening,” said Linda Beavers, FDIC regional ombudsman, who came here from Atlanta and will return to Atlanta Tuesday.
“Customers have been very understanding.”
Regulators and bank employees worked Saturday and Sunday to make the transition work.
Between 25 and 30 FDIC regulators will be at the banks through Monday, most of them at the headquarters branch, and some will stay through Thursday, Beavers said.
Westsound Bank got into trouble during the runup of the housing market, when it made very aggressive and risky high-end construction loans that didn’t require income verification. Many of the loans went bad, draining the bank of capital so severely it could not continue.
In the end, its total assets were $335 million and deposits were $304 million.
Scripps Interactive Newspapers Group
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