SAN FRANCISCO, Kalifornia - May 9, 2009 - State and federal regulators on Friday closed Westsound Bank of Bremerton, Washington, marking the 33rd bank failure so far this year.

The Federal Deposit Insurance Corporation said in a statement that it has entered into a purchase and assumption agreement with Kitsap Bank of Port Orchard, Washington to assume all the deposits of Westsound, except those from brokers.

Westsound Bank's nine offices will reopen on Monday as branches of Kitsap Bank, the FDIC said. As of the end of March, Westsound Bank had total assets of $334.6 million and total deposits of $304.5 million. Kitsap will not assume the approximately $9.4 million in brokered deposits. The FDIC will pay the brokers directly.

In addition to assuming the failed bank's deposits, Kitsap Bank will purchase $49.3 million of assets comprising cash, cash equivalents, marketable securities and loans secured by deposits. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates the cost to its Deposit Insurance Fund will be $108 million.