Irvine-based Sunwest Bank has acquired the assets and deposits of Westside Community Bank, a University Place, Wa.-based bank that was seized by the Federal Deposit Insurance Corp. last week.
Westside Community will fold into the Sunwest brand, and its two branches will open today under the new name. Sunwest is among the largest banks based in Orange County, with about $620.2 million in assets at the end of September. It had $519.7 million in deposits at the time.
The acquisition of Westside Community will add about $97.7 million in assets and $96.5 million in deposits to Sunwest’s balance sheet.
Westside Community is the first bank to be shut down by the FDIC this year. It had been under regulators’
orders to boost capital. It offered two capital-raising plans proposed last year, and both were rejected by the FDIC.
Sunwest did not enter into a loss-sharing agreement with the FDIC, and the agency estimated the liquidation of Westside Community will cost its deposit insurance fund about $20.3 million.
