East West Bancorp Inc. acquired the failed operations of Washington First International Bank, raising to 82 the number of U.S. lenders that have collapsed this year.

East West, the Pasadena, California-based lender with $20.3 billion in assets, acquired Seattle-based Washington First after state regulators closed it, according to a statement yesterday on the Federal Deposit Insurance Corp.’s website. The failure cost the agency’s deposit-insurance fund $158.4 million.
“This acquisition further strengthens our vision to be recognized as the premier bridge between East and West and our position as the largest bank in the U.S. focused on serving the Asian-American community,” East West Chief Executive Officer Dominic Ng said in a statement. The deal shows the bank’s commitment to that community in the Seattle region, he said.
Regulators are closing banks at the fastest pace since the 1990s amid loan losses tied to real estate. The FDIC’s list of “problem” lenders is the longest since 1992.
FDIC Chairman Sheila Bair said the confidential list rose to 775 banks with $431 billion in assets in the first quarter. That’s an increase from 702 banks with $402.8 billion in assets at the end of the fourth quarter.
(Source: Bloomberg)