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Shuttered Washington bank was former CU
TACOMA, Wash. (3/2/10)--A bank shuttered Friday by Washington state and federal regulators was a former credit union. Rainier Pacific Bank, Tacoma, Wash.--formerly Rainier Pacific CU--was closed Friday afternoon by the Washington Department of Financial Institutions (DFI), which appointed the Federal Deposit Insurance Corp. (FDIC) as receiver, reported the FDIC. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank, based in Roseburg, Ore., to assume Rainier Pacific Bank's deposits. "For consumers wanting to change institutions given the closure, it is reassuring to recognize that community is served by a number of alternative institutions, including some exceptionally strong credit unions that have stayed true to their chartering roots and traditional mission," John Annaloro, president of the Washington Credit Union League, told News Now. "Rainier Pacific pursued a banking charter, for better or worse, and times were bad for them. The outcome is unfortunate," Annaloro added. The 14 branches of Rainier Pacific Bank will reopen as branches of Umpqua Bank, with depositors automatically becoming depositors at Umpqua. As of Dec. 31, Rainier Pacific Bank has roughly $717.8 million in total assets and $446.2 million in total deposits. Founded as Tacoma Teachers CU in 1932, the former credit union received its community charter in 1995. In late November, 2000, more than 70% of its 5,700 voting members voted in favor of converting to a savings bank charter. The credit union became Rainier Pacific Bank on Jan. 1, 2001. At the time of the conversion, the credit union's executives told News Now that Prompt Corrective Action regulations limited the credit union's ability to make mortgage loans. Roughly 55% of its loan portfolio were real estate-based loans (News Now Nov. 29, 2000).


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