The Washington Department of Financial Institutions has taken possession of Bremerton’s troubled Westsound Bank.

The agency cited “severe asset problems, significant losses and inadequate capital” as reasons why the bank was closed. As the bank branches closed at 5:30 p.m. and 6 p.m. Friday, and as the agency took possession, DFI immediately appointed the Federal Deposit Insurance Corp. as receiver.

FDIC immediately entered into a “purchase and assumption agreement” with Kitsap Bank of Port Orchard. Kitsap Bank will therefore take posession of all deposits and other business once conducted by Westsound.

On Monday, the corporate office and branches of Westsound will reopen under the supervision and ownership of Kitsap Bank. Online services will not be available until Monday.

Calls to Westsound Bank late Friday went unanswered.

“It is regrettable to take such actions, but DFI did so to ensure the soundness and stability of banking in Washington State,” said Brad Williamson, DFI director of banks late Friday. “This unfortunate event is the result of very poor lending practices during the past several years. While the current management team worked diligently to overcome problems with the bank’s loan portfolio – a combination of the downturn in the local real estate market and the overall economic situation combined to make it impossible for the institution to continue.”

Kitsap Bank will assume all deposits of Westsound Bank except brokered deposits, which the FDIC will pay. No losses by Westsound customers are anticipated, DFI said in a statement.

Depositors of the former Westsound Bank can access their funds by writing checks or using ATM or debit cards. Loan customers are advised to continue making payments.

Scott Jarvis, DFI director, said late Friday that “reality set in and they gave up the ghost. I think it’s fair to say that poor lending practices in the past years were too much for the bank’s new management. They really did try.”

Jarvis said the closure was not an indication of further and imminent bank closures in the state, although he said, “I don’t think there’s any question that there is strain in the commercial banking system.”

Westsound Bank operated branches in Bremerton, Gig Harbor, Federal Way, Poulsbo, Sequim, Silverdale, Port Townsend, Port Orchard and Port Angeles. Agents of both the federal and state agencies were at each branch Friday evening beginning to facilitate the transition of ownership.

Click here for information from the FDIC.

Click here for information from DFI.

Tacoma/Pierce County was the only region in the state to see both a month-over-month increase in revenues per hotel room and increases in room occupancy and average daily room rates for March, according to a study on hotel industry trends by Wolfgang Rood Hospitality Consulting of Bellevue.

While Tacoma/Pierce County hotel room revenues jumped more than 8 percent in March, state revenues dipped 17.4 percent compared to the same month last year.

Bellingham/Northwest Washington was the only other region with increased in room occupancy in March, though less than Tacoma/Pierce County’s 4.6-percent increase.

Though room rates in the city and county are in the lower half of those offered in the state, at an average of $81.90 per stay, a 3.6-percent rate increase in Tacoma/Pierce County was higher than in any other region. Statewide room rates fell nearly 10 percent, with the highest decrease in Downtown Seattle at nearly 12 percent for March.

Both hotel occupancy and average daily room rates declined in most markets of the Pacific Northwest compared to the first quarter of last year.

The statewide revenue per available room slumped 19 percent year over year for the first quarter, with decreases in each region ranging from 2.6 to 24.6 percent.

Seattle freight forwarding and logistics company Expeditors International reported lower first quarter profits this week but rejected using layoffs to pump up its short-term results.

“We obviously would like to have reported higher quarterly earnings,” said Expeditors Chairman Peter J. Rose said in a statement. “However, we saw no long-term benefit in resorting to short-term measures, like employee layoffs or other actions which could severely damage the value of our network by compromising our customer service capability, just to pick up a couple of cents per share.

“We have not forgotten that ours is a service business. Our people are our most valuable assets.”

Expeditors reported net profits of $59.3 million in the first quarter or 27 cents a share. That compares with $66.5 million or 30 cents a share in the same quarter a year earlier.

The first quarter's gross was off 30 percent to $912.7 million.

That firgure reflects dampened activity in the import-export business because of the recession.

The lighted Chihuli mice dancing nightly across Blue Mouse Theatre’s front have something more to celebrate in the building’s 85th year.

State legislators recognized this week Proctor District’s prized theatre – believed to be the oldest continuously running movie theatre in the state – for outstanding achievement in historic preservation.

The theatre’s first nod came in March from the Washington State Department of Archaeology and Historic Preservation (DAHP), which issues yearly awards to individuals and organizations for preserving pieces of history across the state.

Despite decades of steep competition from large movie theaters moving into the area, a group of devoted patrons called the Blue Mouse Theatre Associates have helped keep the quaint picture shows alive.

The Associates, headed by longtime Proctor resident and shop owner Bill Evans, raised more than $200,000 to restore the building to its original 1923 charm. The theatre now plays mostly second-run films as well as work from local filmmakers.

The picture shows began in 1923 with the silent film "Green Goddess,” starring George Arliss and Alice Joyce.

Smells Like Tacoma, a film featuring local skateboarders, will be playing tonight at 6 p.m. and 8 p.m. Tickets are available at the box office for $5.

Three of the top five airports ranked by on-time arrivals in April are located on the West Coast, according to new figures from an on-line flight tracking firm.

Flightstats.com said Oakland, Calif., was the top performer among the North America's major airports with 88.27 percent of its flights on time in April.

Salt Lake City was second followed by Minneapolis, Vancouver, B.C. and Portland.

Seattle was 15th on the list with 82.63 percent of its flights on time last month.

At the bottom of Flightstats' ranking were New York City's three airports, Newark, La Guardia and JFK.

Newark flights were on schedule just 54.88 percent of the time in April.

SeaTac-based regional airline Horizon Air was second among the nation's 40 top airlines in on-time arrivals in April, according to Portland's Flightstats.com.

The airline, owned by the same holding company as Alaska Airlines, earned an 89.56 percent on-time record last month.

Only Hawaiian Airlines with a 91.44 percent on-time record beat Horizon.

At the bottom of the list was Freedom Airlines with 65.93 percent of its flights on time. Freedom, based in Irving, Texas, operated as a Delta Connection carrier flying from New York's Kennedy Airport.

Among major U.S. carriers, Horizon's sister airline, Alaska, was in the top spot in April with an on-time arrival record of 84.27 percent. Alaska and Horizon have the largest market share of passengers at Sea-Tac Airport.

The bottom-rated major carrier was Continental with 71.82 percent of its flights arriving within 15 minutes of schedule.