Oregon Bank is 14th Failure of 2009The 14th bank failure of 2009 came on Friday, as the Oregon Department of Consumer and Business Services closed Silver Falls Bank in Silverton, OR. The FDIC arranged for Citizens Bank in Corvallis, OR to assume all of the deposits of Silver Falls Bank.
The three branches of Silver Falls Bank were to reopen Monday as branches of Citizens Bank. Silver Falls Bank had total assets of $131.4 million and total deposits of $116.3 million.
In addition to acquiring all of the failed banks deposits, including those from brokers, Citizens Bank will buy $13 million in assets comprised of cash, cash equivalents, securities, overdraft loans and deposit secured loans. The FDIC will retain any remaining assets for later disposition.
The FDIC estimates the cost to the Deposit Insurance Fund will be $50 million. Silver Falls Bank is the second Oregon bank to fail in 2009. The first Oregon bank to fail in Oregon in 2009 was Pinnacle Bank, Beaverton, OR on February 13.