Silver Falls Bank Second Oregon Bank to Fail

Silver Falls Bank of Silverton, Oregon, was closed today by the Oregon Department of Consumer and Business Services.

Salem-News.com

(Salem) - To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank of Corvallis, to assume all of the deposits of Silver Falls Bank.

As of February 9, 2009, Silver Falls Bank had total assets of approximately $131.4 million and total deposits of $116.3 million. Citizens Bank did not pay a premium to acquire the deposits of Silver Falls Bank.

`Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-760-3639.

The phone number will be operational this evening until 9:00 p.m., PST; on Saturday from 9:00 p.m. to 6:00 p.m., PST; on Sunday from Noon to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST.

Customers who would like more information about today's transaction can also visit the FDIC's Web site at FDIC: Information for Silver Falls Bank, Silverton, OR.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $50 million.

The Citizens Bank acquisition of all the deposits of Silver Falls Bank was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to alternatives.

Silverton Bank is the second bank to fail in Oregon this year and the 14th in the nation.