SEATTLE (BNO NEWS) — Federal regulators on Friday closed the Evergreen Bank in Seattle, Washington, marking the eighth U.S. bank failure of 2010 following an economic turbulent year that saw more than one hundred U.S. banks fail.

The Evergreen Bank was closed by the Washington Department of Financial Institutions after its regular closing time on Friday. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver following its closure, who immediately entered into a purchase and assumption agreement with the Oregon-based Umpqua Bank to assume all of the failed bank’s deposits.

The Evergreen Bank was founded in 1971 by a former Seattle school teacher and had seven branches upon its failure on Friday.

Most, if not all customers, should see no or little service disruptions despite the closure of the institution. On Monday, the seven branches of the Evergreen Bank will reopen during their normal business hours as branches of Umpqua Bank.

All of the failed bank’s services, including checks, ATM and debit cards, will remain active. “Checks drawn on the bank will continue to be processed,” the FDIC said in a statement. “Loan customers should continue to make their payments as usual.”

As of September of last year, the Evergreen Bank had approximately $488.5 million in total assets and $439.4 million in total deposits. Umpqua Bank paid the FDIC a premium of 1.0 percent to assume Evergreen Bank’s deposits, the FDIC said. “In addition to assuming all of the deposits of the failed bank, Umpqua Bank agreed to purchase essentially all of the assets.”

The FDIC and Umpqua Bank entered into a loss-share transaction on approximately $379.5 million of Evergreen Bank’s assets. Umpqua Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

As part of this transaction, the FDIC will acquire a cash participant instrument. This instrument serves as additional consideration for the transaction.

The FDIC said it estimates that the cost to the Deposit Insurance Fund (DIF) will be $64.2 million. It said Umpqua Bank’s acquisition of the deposits was the “least costly” resolution.

Friday’s closure was not only the eighth U.S. bank failure of 2010 but was also Washington’s second bank failure this year. Regulators closed the Horizon Bank in Bellingham on January 8.