On Friday, the Washington Department of Financial Institutions closed Shoreline Bank, headquartered in Shoreline, Washington, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with GBC International Bank, headquartered in Los Angeles, California, to assume all of the deposits of the failed bank.
As of June 30, 2010, Shoreline Bank had approximately $104.2 million in total assets and $100.2 million in total deposits. GBC International Bank will pay the FDIC a premium of 0.25% to assume all of the deposits of Shoreline Bank and will purchase approximately $65.7 million of the failed bank's assets. The FDIC and GBC International Bank entered into a loss-share agreement on $49.2 million of Shoreline Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $41.4 million million. Shoreline Bank is the 129th FDIC-insured institution to fail in the nation this year, and thetenth in Washington.