Westside Community Bank in University Place, Wash., became the first failed institution of 2013 late Friday.

State regulators seized the $98 million-asset bank and handed the keys to the Federal Deposit Insurance Corp. The FDIC announced a sale of the failed bank’s two branches and essentially all of its assets to Sunwest Bank in Irvine, Calif.

The acquirer will assume all of Westside Community's $96 million in deposits. The branches will reopen under Sunwest management on Monday. The failure was estimated to cost the FDIC about $20 million.

It was the first failure in Washington state since the August 2011 closure of Bank of Whitman, which was located in Colfax.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.