Failed Bank Information
Information for Westsound Bank, Bremerton, WA
- Introduction
- Press Release
- Acquiring Financial Institution
- Question and Answer Guide
En Espanol - Banking Services
- Loan Customers
- Possible Claims Against the Failed Institution
- Priority of Claims
- Dividend Information
- Brokered Deposits
- Purchase and Assumption Agreement (207 kb PDF File - PDF Help)
- 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, May 8, 2009, Westsound Bank, Bremerton, WA was closed by the Washington 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.
II. Press Release
The FDIC has issued a press release (PR-069-2009) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact David Barr at 202-898-6992.
III. Acquiring Financial Institution
All non-brokered deposits have been transferred to Kitsap Bank, Port Orchard, WA ("assuming institution") and will be available immediately. On Monday, May 11, 2009, the former Westsound Bank locations will reopen as branches of Kitsap Bank.
Your transferred deposits will be separately insured from any accounts you may already have at Kitsap Bank for six months after the failure of Westsound Bank. Checks that were drawn on Westsound 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 regarding deposit insurance by calling: (888) 206-4662.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimato
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 Kitsap Bank as long as the deposits are not pledged as collateral for loans. You may view more information about Kitsap Bank by visiting their web site.
Kitsap Bank (www.kitsapbank.com)
V. Banking Services
As of Monday, May 11, 2009, you may continue to use the services to which you previously had access, such as, ATMs, online services, 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, May 8, 2009, will be paid at your same rate. Kitsap Bank will be reviewing rates and will provide further information soon. 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.
VI. Loan Customers
If you had a loan with Westsound Bank, you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract, because they are contractually agreed to in your promissory note with the failed institution. 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 Kitsap Bank, please contact your branch office.
Please see A Borrower's Guide to an FDIC Insured Bank Failure for additional information.
VII. Possible Claims Against the Failed Institution
If you or your company provided a service or product, leased space, furniture, or equipment to Westsound Bank after Friday May 8, 2009 and have not been paid you do not have a claim against Westsound Bank. Please follow your normal billing procedures by providing an invoice as instructed.
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 Westsound Bank prior to Friday May 8, 2009 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 Westsound Bank prior to the bank's failure for which you have not been paid and you have not received communication, contact:
FDIC as Receiver for Westsound Bank
1601 N. Bryan Street
Dallas, TX 75201-3430
Attention: Claims Agent
(888) 206-4662
Please note: There are time limits for filing a claim, your claim must be filed on or before 08/12/2009.
VIII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:
- Depositors
- General Unsecured Creditors
- Subordinated Debt
- Stockholders
IX. Dividend Information
Dividend Information on Failed Financial Institutions
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.