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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Failed Bank Information

Information for Horizon Bank, Bellingham, WA

  1. Introduction
  2. Press Release
  3. Acquiring Financial Institution
  4. Question and Answer Guide
  5. Banking Services
  6. Loan Customers
  7. Possible Claims Against the Failed Institution
  8. Priority of Claims
  9. Dividend Information
  10. Brokered Deposits
  11. Purchase and Assumption Agreement (498 kb PDF File - PDF Help)
  12. Bid Summary
  13. Horizon Bank Contact information
  14. Balance Sheet Summary

Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any Phishing Scams to obtain information from you.

I.  Introduction

On Friday, January 8, 2010, Horizon Bank, Bellingham, WA was closed by the Washington State Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.  No advance notice is given to the public when a financial institution is closed.

The FDIC has assembled useful information regarding your relationship with this institution.  Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution.  The FDIC has compiled the following information, which should answer many of your questions.

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II.  Press Release

The FDIC has issued a press release (PR-004-2010) about the institution's closure.  If you represent a media outlet and would like information about the closure, please contact David Barr at 1-202-898-6992.

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III.  Acquiring Financial Institution

All deposit accounts, excluding certain brokered deposits, have been transferred to Washington Federal Savings and Loan Association, Seattle, WA ("assuming institution") and will be available immediately.  On Saturday, January 9, 2010, the former Horizon Bank locations will reopen as branches of Washington Federal Savings and Loan Association.

Your transferred deposits will be separately insured from any accounts you may already have at Washington Federal Savings and Loan Association for six months after the failure of Horizon Bank. Checks that were drawn on Horizon Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. If you have questions about your account(s) transferred to the assuming bank, you may speak to an FDIC representative by calling 1-800-430-6165.

For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.

EDIE - FDIC's Electronic Deposit Insurance Estimator

You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Washington Federal Savings and Loan Association as long as the deposits are not pledged as collateral for loans. You may view more information about Washington Federal Savings and Loan Association by visiting their web site.

Washington Federal Savings and Loan Association (

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V.  Banking Services

The Automated Teller Machines (ATM) and online service will remain available.

As of Saturday, January 9, 2010, you may continue to use the services to which you previously had access, such as safe deposit boxes, night deposit boxes, wire services, etc.

Your checks will be processed as usual.  All outstanding checks will be paid against your available balance(s) as if no change had occurred.  Your new bank will contact you soon regarding any changes in the terms of your account.  If you have a problem with a merchant refusing to accept your check, please contact your branch office.  An account representative will clear up any confusion about the validity of your checks.

All interest accrued through Friday, January 8, 2010, will be paid at your same rate.  Washington Federal Savings and Loan Association will be reviewing rates.  You will be notified of any changes.

Your automatic direct deposit(s) and/or automatic withdrawal(s) will be transferred automatically to your new bank.  If you have any questions or special requests, you may contact a representative of your assuming institution at your branch office.

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VI.  Loan Customers

If you had a loan with Horizon Bank, you should continue to make your payments as usual. The terms of your loan will not change, because they are contractually agreed to in your promissory note. Checks should be made payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, please contact your loan officer.

For all questions regarding new loans and the lending policies of Washington Federal Savings and Loan Association, please contact your branch office.

Please see A Borrower's Guide to an FDIC Insured Bank Failure for additional information.

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VII.  Possible Claims Against the Failed Institution

Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. If you or your company provided a service or product, leased space, furniture, or equipment to Horizon Bank after Friday, January 8, 2010 and have not been paid, you do not have a claim against Horizon Bank. Please follow your normal billing procedures by providing an invoice as instructed.

If you or your company provided a service or product, leased space, furniture, or equipment to Horizon Bank prior to Friday, January 8, 2010 and have not been paid, you may be entitled to a claim against the bank. If you provided a product to or a service for Horizon Bank prior to the bank's failure for which you have not been paid and you have not received communication, please contact:

Federal Deposit Insurance Corporation
Receiver: Horizon Bank
1601 N. Bryan Street
Dallas, TX  75201-3430
Attention: Claims Agent

Please note: There are time limits for filing a claim, your claim must be filed on or before 4/14/2010.

All shares of Horizon Bank were owned by its holding company, Horizon Financial Corp., Bellingham, WA. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of Horizon Financial Corp., please do not contact or file a claim with the Receiver. You may contact Horizon Financial Corp. directly for information as follows:

Horizon Financial Corp.
c/o The Registered Agent
Keller Rohrback, LLP
Attn: Thomas A. Strecken, Esq.
1201 3rd Avenue, Suite 3200
Seattle, Washington 98101

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VIII.  Priority of Claims

In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:

  1. Depositors
  2. General Unsecured Creditors
  3. Subordinated Debt
  4. Stockholders

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IX.  Dividend Information

Dividend History on Hometown Community Bank

Dividend Information on Failed Financial Institutions

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X.  Brokered Deposits

The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele.  This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution.

Deposit Broker's Processing Guide

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General Disclaimer