On Friday, the Washington Department of Financial Institutions closed Rainier Pacific Bank, headquartered in Tacoma, Washington, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Umpqua Bank, headquartered in Roseburg, Oregon, to assume all of the deposits of Rainier Pacific Bank. Rainer Pacific Bank is the second bank acquired by Umpqua Bank this year.
As of December 31, 2009, Rainier Pacific Bank has approximately $717.8 million in total assets and $446.2 million in total deposits. Umpqua Bank paidthe FDIC a premium of 1.04% to assume the deposits of Rainier Pacific Bank. Umpqua Bank also agreed to purchase approximately $670.1 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition. The FDIC and Umpqua Bank entered into a loss-share transaction on $578.1 million of Rainier Pacific Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $95.2 million. Rainier Pacific Bank is the 22nd FDIC-insured institution to fail in the nation this year, and the fourth in Washington.