Twin City Bank, Longview, Washington, Assumes All of the Deposits of Hometown National Bank, Longview, Washington
October 2, 2015
Greg Hernandez (202) 898-6993
Hometown National Bank, Longview, Washington, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Twin City Bank, Longview, Washington, to assume all of the deposits of Hometown National Bank.
The sole branch of Hometown National Bank will reopen as a branch of Twin City Bank during its normal business hours. Depositors of Hometown National Bank will automatically become depositors of Twin City Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Hometown National Bank should continue to use their existing branch until they receive notice from Twin City Bank that it has completed systems changes to allow other Twin City Bank branches to process their accounts as well.
This evening and over the weekend, depositors of Hometown National Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of June 30, 2015, Hometown National Bank had approximately $4.9 million in total assets and $4.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, Twin City Bank agreed to purchase approximately $3.8 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
Customers with questions about today's transaction should call the FDIC toll-free at 1-800-930-1908. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; on Monday from 8 a.m. to 8 p.m., PDT; and thereafter from 9:00 a.m. to 5:00 p.m., PDT. Interested parties also can visit the FDIC's website at https://www.fdic.gov/bank/individual/failed/hometownnatl.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.6 million. Compared to other alternatives, Twin City Bank's acquisition was the least costly resolution for the FDIC's DIF. Hometown National Bank is the eighth FDIC-insured institution to fail in the nation this year, and the first in Washington. The last FDIC-insured institution closed in the state was Westside Community Bank, University Place, on January 11, 2013.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's banks and savings associations, 6,348 as of June 30, 2015. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-78-2015