Shoreline Bank shut down, sold to Los Angeles GBC International Bank

The news was just released that Shoreline Bank has been shut down by federal regulators. The announcement was made after the close of business on Friday to allow time to transfer assets to a new bank and get new staff in place.

According to the Puget Sound Business Journal, the bank was sold to Los Angeles, Californa-based GBC International Bank. GBC acquired most of Shoreline’s performing assets.

The BizJournal said that "Shoreline suffered severely from loan losses, especially in its commercial and development sector. The loan defaults and delinquencies were the main contributor to its deteriorated capital levels. "

"At the time of closure, Shoreline had $104.2 million in assets and $100.2 million in deposits."

Deposits are insured by the FDIC. The normal process is for all accounts to be transferred to the new bank, with no interruption in service to customers.

The standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category. This includes principal and accrued interest and applies to all depositors of an insured bank.

According to the FDIC, "In the event of a bank failure, the FDIC acts in two capacities. First, as the insurer of the bank’s deposits, the FDIC pays insurance to the depositors up to the insurance limit. Second, the FDIC, as the “Receiver” of the failed bank, assumes the task of selling/collecting the assets of the failed bank and settling its debts, including claims for deposits in excess of the insured limit."

Shoreline Bank has been under a "prompt corrective action" since May 27. Officials were positive about their prospects and launched a stock offering in June.

The main branch of the ten-year-old Shoreline Bank is located at 16001 Aurora. Branches are in Top Foods at 185th and Midvale N, and at 20011 Ballinger Way NE. An ATM machine is in Lake Forest Park in Third Place Commons.

Shoreline Bank was the only locally-owned bank in Shoreline and Lake Forest Park.

It is the second Shoreline Bank to be taken over.  City Bank of Lynnwood, with branches on Ballinger Way and 8th NW in Richmond Highlands, was taken over and sold to Whidbey Island Bank in April.

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Shoreline Bank launches stock offering

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