FDIC Friday - Silver Falls Bank fails

Oregon bank is 14th failure of 2009
By MarketWatch
Last update: 9:35 p.m. EST Feb. 20, 2009

SAN FRANCISCO (MarketWatch) -- Silver Falls Bank, of Silverton, Ore., was closed Friday by state regulators and the Federal Deposit Insurance Corporation.

It was the 14th bank to fail so far this year and the 39th since the beginning of the current credit crisis.

Citizens Bank, of Corvallis, Ore. will assume all of the deposits of Silver Falls Bank, the FDIC said. Silver Falls Bank had three branches, all of which will reopen Monday as branches of Citizens Bank.

As of Feb. 9, the 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, according to the FDIC.

In addition to acquiring all of the failed banks deposits, including those from brokers, Citizens Bank agreed to purchase approximately $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 that the cost to the Deposit Insurance Fund will be $50 million.