Federal regulators on Friday afternoon closed all 12 of the American Marine Bank offices in Western Washington, including the branches inside the Port Townsend Safeway and a branch in Port Ludlow.

However, all branches reopened under the ownership of Columbia State Bank of Tacoma, according to a press release from the Washington State Department of Financial Institutions.

American Marine Bank, headquartered on Bainbridge Island, has branches located in Jefferson, Kitsap, Clallam, Mason and King counties. All will be assumed by Columbia State Bank.

A Columbia Bank sign has been draped over the American Marine Bank sign on the Port Townsend Safeway store's exterior.

The Washington State Department of Financial Institutions (DFI) closed American Marine Bank Friday, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of American Marine Bank.

The FDIC immediately entered into a purchase and assumption agreement with Columbia State Bank, headquartered in Tacoma. Columbia State Bank will assume all deposits and certain assets of American Marine Bank, except certain brokered deposits, which will be paid out by the FDIC.

“American Marine’s capital has been depleted by large loan losses and resultant loan loss reserve provisions,” Brad Williamson, Director of DFI’s Division of Banks explained.

“We are always disappointed when a bank is unable to continue safe and sound financial operations,” DFI Director Scott Jarvis said. “We are pleased, however, to see the bank acquired by Washington State chartered Columbia State Bank. This is a good outcome for bank depositors and borrowers.”

American Marine Bank, founded in 1948 and headquartered on Bainbridge Island, has branches located in Kitsap, Clallam, Jefferson, Mason and King counties. All will be assumed by Columbia State Bank.

"We warmly welcome former American Marine Bank customers into our network of 73 Columbia State Bank Branches in Washington and Oregon," said Melanie J. Dressel, president and CEO, Columbia Banking System, said in a press release. "While branches will open under new ownership, deposits are safe, accessible and remain FDIC insured to the maximum provided by law. We anticipate a smooth transition, and look forward to working with the American Marine Team, who have served their community so well."

Throughout the weekend and transition, American Marine Bank customers can access their funds by writing checks or using ATM or debit cards. Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services also will remain available.

As of Sept. 30, 2009, American Marine Bank had total assets of $361,356,000 and total deposits of $308,452,000. The bank apparently lost $20 million in the first two quarters of 2009. Regulators last November gave the bank a 30-day deadline to generate capital to stave off closure.

There have been 174 bank closures since 2008, compared to 11 closures between 2000 and 2008, according to the Federal Deposit Insurance Corp.

American Marine Bank is the fifth to close in Washington, and the second affecting Jefferson County.

American Marine Bank customers seeking more information about the closure should visit www.dfi.wa.gov/banks/americanmarine.htm or  http://www.columbiabank.com, or www.americanmarinebank.com.