Whidbey Island Bank has acquired the struggling Lynnwood-based City Bank.

Below is information from the Washington Department of Financial Institution:

On Friday, April 16, 2010, the Washington Department of Financial Institutions (DFI) closed City Bank, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of City Bank.

The FDIC immediately entered into a purchase and assumption agreement with Whidbey Island Bank, headquartered in Oak Harbor, Washington. Whidbey Island Bank will assume all deposits and certain assets of City Bank, except certain brokered deposits, which will be paid out by the FDIC.

Information for City Bank Customers

• Whidbey Island Bank will assume all deposits and certain assets of City Bank, except certain brokered deposits, which will be paid out by the FDIC.
• Depositors of City Bank will automatically become depositors of Whidbey Island Bank.
• All eight of City Bank’s drive-up locations will open on Saturday, April 17, 2010 as Whidbey Island Bank branches for normal Saturday banking hours. All locations including the main office will reopen on Monday, April 19.
• Throughout the weekend, depositors of City Bank can access their funds by writing checks or using ATM or debit cards.
• Checks drawn on the bank will continue to be processed.
• Loan customers should continue to make their payments as usual.

Resources for City Bank Customers

Whidbey Island Bank Web Site
Information from the FDIC
When a Bank Fails – The Facts