Western National Bank, Phoenix, AZ, was closed today by the Comptroller of the Currency and the FDIC was appointed as receiver. The FDIC entered into a purchase and assumption agreement with Washington-Federal , Seattle, Washington, to assume all deposits of failed Western National Bank.
Western National had three branches, all of which will reopen on Monday as branches of Washington-Federal. All depositors of Western National will automatically become depositors of Washington-Federal. Over the weekend, depositors of Western National will have access to their money via checks, ATM and debit cards.
Western National had been the subject of heightened regulatory scrutiny since July 2009 when the Comptroller of the Currency cited the Bank for “unsafe and unsound banking practices.” Attempts to turn the Bank around failed and regulators had no choice but to close Western National.
At September 30, 2011, Western National had total assets of $162.9 million and total deposits of $144.5 million. Washington-Federal agreed to purchase all of the failed bank’s assets.
Western National Bank becomes the nation’s 92nd banking failure of 2011 and the third in Arizona. The cost to the FDIC to close failed Western National is $37.6 million.