Oregon Bank is 14th Failure of 2009

The 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.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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