WSB Financial Inc. in Bremerton, Wash., has warned that its survival is in doubt.

The $365 million-asset company filed its annual report with the Securities and Exchange Commission on Friday, showing a 2008 loss of $32.6 million, more than six times its loss the year before.

The company's ratio of nonperforming loans to total loans rose more than 33 percentage points from a year earlier, to 39.43% at yearend. However, the company remained well-capitalized by regulatory standards, with a total risk-based capital ratio of 11.8% and a Tier 1 risk-based capital ratio of 10.5%.

In March 2008 the Federal Deposit Insurance Corp. ordered WSB's bank subsidiary to stop taking brokered deposits.

"As a result of the FDIC order, the significant operating losses incurred in 2008 and 2007 and the resulting deterioration of our capital position, we believe there is substantial doubt about our ability to continue as a going concern," the company said.

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