Regulators shut Washington's Horizon Bank

Regulators shut Horizon Bank in Bellingham, Wash., on Friday, the first bank closing of 2010.

The Federal Deposit Insurance Corp. said that Seattle-based Washington Federal Savings and Loan Association has agreed to take on the deposits of Horizon Bank and to purchase essentially all of the bank's assets.

As of Sept. 30, Horizon Bank had assets of $1.3 billion and deposits totaling $1.1 billion.

The 18 branches of Horizon Bank will reopen Saturday as branches of Washington Federal Savings and Loan.

As the economy has soured, with unemployment rising, home prices tumbling and loan defaults soaring, bank failures have accelerated and …