One of the more than 30 credit unions that have converted to or merged with mutual banks became the 209th bank to fail since 2000 and the 22nd to fail this year.
Rainier Pacific Bank's life came to an end at the close of business on Feb. 26, when officials from the Washington Department of Financial Institutions closed the bank and, in an arrangement with the FDIC, acceded to a purchase and assumption agreement with the Umpqua Bank in Roseburg, Ore., according to a DFI statement.
"Rainier Pacific Bank's capital has been depleted by significant securities write-downs and loan losses," Brad Williamson, director of DFI's Division of Banks, explained when the DFI closed the institution. "Rainier's largest losses resulted from write-downs on collateralized debt obligations that lost tremendous value as the financial markets became illiquid and underlying asset values declined. Construction loan losses further eroded the bank's capital position."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
