Failed Bank Report: Claim FDIC Insured Deposits at Failed Banks

Westsound Bank  Bremerton, WA

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Friday, May 8, 2009: Westsound Bank, Bremerton, WA was closed by the Washington Department of Financial Institutions. The Federal Deposit Insurance Corporation (FDIC) was named Receiver.

As of March 31, 2009, Westsound Bank had total assets of $334.6 million and total deposits of $304.5 million.

The FDIC entered into a purchase and assumption agreement with Kitsap Bank, Port Orchard, Washington, to assume all of the deposits, except approximately $9.4 million in brokered deposits. The FDIC will pay the brokers directly. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

All non-brokered deposits have been transferred to Kitsap Bank, Port Orchard, WA and are available immediately. On Monday, May 11, 2009, nine former Westsound Bank locations reopened as branches of Kitsap Bank.

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. All interest accrued through Friday, May 8, 2009, will be paid at your same rate, however Kitsap will be reviewing rates.

Kitsap Bank
619 Bay Street
Port Orchard, WA 98366

In addition to assuming the failed bank's deposits, Kitsap Bank will purchase $49.3 million of assets comprised of cash, cash equivalents, marketable securities and loans secured by deposits. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates the cost to its Deposit Insurance Fund will be $108 million.

For additional information and assistance contact the FDIC at:800-830-4735 or go to:

2009 FDIC Insured Failed Banks
Westsound Bank
607 Pacific Avenue
Bremerton, WA 98337

Established on 3/12/1999 as
Westsound Bank

Assets: $335 million
Deposits: $305 million
Cost to FDIC: $108 million



Creditor Claims: Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. Shortly after the failure, the FDIC sends notices directly to all known service providers to explain the claim filing process.

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. Contact:

Federal Deposit Insurance Corporation
Receiver: Westsound Bank
40 Pacifica
Irvine, CA 92618

Note: There are time limits for filing a claim, your claim must be filed on or before 08/12/2009.

Consumer Alert

Unclaimed FDIC Insured Deposits

Note: There are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes ...

If an insured depositor fails to make a claim an insured or transferred deposit within 18 months after the FDIC initiates the payment of insured deposits, the transferee institution must refund the deposit to the FDIC, and all rights of the depositor against the transferee institution are barred.

The FDIC then remits the insured deposit to the custody of the unclaimed property administrator in the account owner's home state, unless that state declines to accept custody. Upon delivery, the FDIC is deemed to have made payment to the depositor, and all rights of the depositor against the FDIC are barred.

Most states allow claims in perpetuity, but there's a reversion clause. If a depositor does not claim the deposit delivered to the custody of the State within 10 years of the date of delivery, the deposit must then immediately be refunded to FDIC, and all rights of the depositor against the state are barred.

It's important to note that If a state declines to accept custody of the deposit - which they sometimes do - the depositor must claim the funds from the FDIC before the receivership is terminated, or all rights of the depositor with respect to the deposit are barred. Dividends for credits arising from uninsured portions of a deposit may, however, be claimed after the receivership is terminated if a dividend check was returned by the post office for a bad address.

Be aware that due to the number of mergers and acquisitions in the banking industry over the years, it is possible you or a deceased family member might well have an account at a failed bank and not know it. Additionally, unclaimed safe deposit boxes at closed branches may be drilled and the contents sold at auction just weeks after closing, so prompt action is advised.  For assistance go to: Unclaimed Account Search

History: Established on 3/12/1999 as Westsound Bank