Frequently Asked Questions: Cowlitz Bank Acquisition

Q: What happened at Cowlitz Bank?
A:As of close of business Friday, July 30, 2010, the Federal Deposit Insurance Corporation (FDIC) became the receiver of Cowlitz and Bay Bank, a division of Cowlitz Bank’s banking operations after the Washington Department of Banking and Finance declared Cowlitz Bank closed. The FDIC quickly moved to protect depositors by arranging for a deposit transfer through a purchase and assumption transaction.

Q: When is this taking effect?
A:This change occurred at 6:00 p.m. Friday, July 30, 2010.

Q: Will Cowlitz Bank and Bay Bank branches become Heritage Bank branches?
A:Yes. Cowlitz Bank’s Longview branch will open on Saturday at 9:00 am as Heritage Bank, all other Cowlitz and Bay Bank branches will open on Monday, August 2, 2010, as Heritage Bank. Depositors of Cowlitz Bank and Bay Bank will automatically become depositors of Heritage Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. 

Deposit Questions

Q: How will this affect former Cowlitz Bank and Bay Bank customers?
A:Heritage Bank’s assumption of deposits allows Cowlitz Bank and Bay Bank consumers and businesses to continue access to their deposits. The FDIC transferred all funds to Heritage Bank. If you held an account at Cowlitz Bank or Bay Bank, you now have an account at Heritage Bank. You will have continued access to your money through your ATM/debit card, online banking, and by writing checks.

Q: Can I continue to write checks, use my ATM/debit card or access online banking/bill pay?
A:Yes. You will be able to continue using your personal and business checks, have access to online banking and bill pay, and access with your ATM/debit card.

Q: A merchant will not honor my check. What can I do?
A:If you have a problem with a merchant refusing to accept your check, please contact your branch office. An account representative will clear up any confusion about the validity of your checks. A copy of the press release from www.fdic.gov can be provided as proof of the transition.

Q: What if my deposits exceeded the FDIC deposit insurance limit?
A:All of your deposits were transferred and are safe and currently available with Heritage Bank. 

If you have accounts in both the failed and the assuming institution, they will be insured separately for at least six months following the merger of the institutions. This will allow you time to restructure your accounts if necessary.

Additionally, the FDIC will have agents on site of all branches the week of August 2, 2010 to meet in person with customers. For further questions contact the FDIC Call Center at 1-800-822-9247, hours of operation (pacific time) are 8 am – 8pm.

Q: What will happen to my direct deposits?
A:Direct Deposits will continue as normal, including Social Security checks. If you need to change anything in the future, please contact or visit your local branch to make those arrangements.

Q: Will my automatic payments through bill pay continue?
A:Yes, bill pay automatic payments will continue.

Q: Will I lose anything on my deposit account?
A:No. YOUR MONEY IS SAFE! No one lost any money on deposit as a result of the closure of this institution.

Q: Will I incur an early withdrawal penalty if I close my CD before maturity?
A:No. You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Heritage Bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.

Q: Will I continue to earn interest at the same rate?
A:All interest on insured deposits accrued through Friday, July 30, 2010, will be paid at your same rate. Heritage Bank will be reviewing rates and will provide further information if needed.

Q: What will happen to the checks which have not cleared my account?
A:Checks that were drawn on Cowlitz Bank or Bay Bank that did not clear before the institution closed will be honored up to your available balance.

Q: What if I need information regarding my account during the time Cowlitz Bank or Bay Bank was in business?
A:Please contact a representative at your local branch to obtain a copy of any records you may need. 

Loan Questions

faqQ: What will happen to my loan with Cowlitz Bank or Bay Bank?
A:If you had a loan with Cowlitz Bank or Bay Bank, you should continue to make your payments as usual. The terms of your loan will not change, because they are contractually agreed to in your promissory note. Checks should be made payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, please contact your loan officer.

For all questions regarding new loans and the lending policies of Heritage Bank, please contact your branch office. Please see A Borrower’s Guide to an FDIC Insured Bank Failure for additional information.

For complete details on the acquisition visit the FDIC website.