Poll: How many Washington-based banks will fail in 2010?

Horizon Bank in Bellingham was the first US bank failure in 2010.

Please vote in this poll using the sidebar.

How many Washington-based banks will fail in 2010?

  • Just 1 (Horizon) (2%, 1 Votes)
  • 2 (3%, 2 Votes)
  • 3-4 (17%, 11 Votes)
  • 5-6 (17%, 11 Votes)
  • 7-9 (14%, 9 Votes)
  • 10 or more (46%, 29 Votes)

Total Voters: 63

This poll will be active and displayed on the sidebar through 01.16.2010.

About The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.


  1. 1
    S. Marty Pantz says:

    Yikes! And I just got a $10k CD with Horizon last November. This is the first time in my life that the FDIC has taken over a bank I’m doing business with. This ought to be interesting, to see how smoothly the transition is from one bank to the other.

  2. 2
    AMS says:

    RE: S. Marty Pantz @ 1 – You’ll be paid the earned interest and your principal will be returned, so long as it’s below $250k, unless the new bank wants to continue the deal.

    “Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-430-6165.”


  3. 3
    Ray Pepper says:

    Don’t buy the Regionals!

    Most would say these all failed anyway if your a shareholder BANR,RPFG,FTBK,STSA……….

    Some say BANR will bounce here from 3.00………I say if it hasn’t in this last 6 months then I’d run from it not walk.

  4. 4
    George says:

    Washington State has a real problem with its community banks. Due to our fragmented builder and land market most of the financing for land development and home building was done with these smaller state chartered banks. As a result a number of them have problems since they have the greatest exposure to the downturn by having financing that is highly leveraged to the speculative builder market. The irony here is that in order to get their charter these banks had to do 65% of their lending as “community based”. That means they could not develop retail banking like the money center banks. As a result they have no offsetting earnings like the money center banks to build reserves.

    Also the FDIC this time around will not let them extend credit into these “risky” markets so the usual workout method of transferring assets from weaker borrowers to stronger borrowers will not work since the FDIC will not allow them to finance the new buyer. The upshot is these banks try to dispose of the assets but ultimately they wind up in an asset pool sale by the FDIC and the FDIC will supply finaning at 70% of the purchase price with 4% interest payable in 5 years so some hedgefund in New York (probably one that help create the problem) gets to bid on these assets pay a fraction of their worth, have the government finance them and then sell them back to you and me at a generous profit.

  5. 5
    The Tim says:

    Whoever voted “Just 1 (Horizon)” has already lost.

    FDIC Press Release, January 22, 2010: Umpqua Bank, Roseburg, Oregon, Assumes All of the Deposits of Evergreen Bank, Seattle, Washington

  6. 6
    AMS says:

    RE: The Tim @ 5 – The two who voted “just two” are leading the pack now, but for how long?

  7. 7
    The Tim says:

    2 more voters disqualified as American Marine Bank becomes Washington State’s third bank failure of 2010. http://www.fdic.gov/news/news/press/2010/pr10027.html

  8. 8
    Ceci N'est Pas Le Chien de Tim says:

    Has this article been referenced in an updated post? Because it’s a good time to do that…

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