February 20, 2009 – 8:27 pm

The FDIC moved in without warning and seized Silver Falls Bank, Silverton, OR, making it the 14th bank closed by the agency in 2009 and the second in Oregon in eight days.

After 17 years of remaining hands-off, Oregon regulators on Friday shuttered a state-chartered bank for the second time in eight days.

Oregon’s department of consumer and business services closed Silver Falls Bank of Silverton, which had a loan portfolio stuffed with poor-performing construction and development loans. The seven-year-old institution had three branches and total assets of $131.4 million. 

The economic decline has been hard on banks, both big and small. Last Friday, regulators closed Pinnacle Bank in Beaverton. In December, Washington regulators shut down The Bank of Clark County in Vancouver.

Silver Falls is the 14th bank to fail nationwide since the first of the year. The body county would be much higher if the government was not bailing out many of the larger banks with massive infusions of taxpayer money.

Citizens Bank of Corvallis, agreed to purchase the remains of Silver Falls. It will assume all of the Silver Falls deposits and the three Silver Falls branches will reopen on Monday as branches of Citizens Bank.

Depositors of Silver Falls Bank will automatically become depositors of Citizens Bank.

Under the terms of the transaction with Citizens Bank, Silver Falls depositors will suffer no losses, the FDIC said.

For more information, go to the FDIC webpage.


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