oregon’s silver falls bank closed

oregon's silver falls bank closedfrom press tv: Silver Falls Bank has been closed by regulators to become the 14th US bank to fail this year amid the worsening US housing crisis. The Federal Deposit Insurance Corp said Silver Falls Bank, which was opened in May 2000, had $131.4 million in assets and $116.3 million in deposits as of Feb. 9. The bank was the second one in Oregon to close since Pinnacle Bank failed last week. Citizens Bank of Corvallis in Oregon is acquiring all of the failed bank’s assets. It is also taking over its three branches and buying about $13 million in assets, including cash, cash equivalents, securities, overdraft loans and deposit-secured loans. The FDIC said the Silver Falls Bank failure is estimated to cost the agency’s deposit insurance fund about $50 million. In 2008, 25 US banks were seized by regulators, up from only 3 in 2007 and more than the total number of banks closed in the previous five years. Plunging home prices and mounting layoffs have taken their toll on financial institutions as the world’s largest economy has entered its second year of recession. Seattle-based lender Washington Mutual became the biggest bank to fail in US history when it was closed in Sep. 2008 due to soured mortgages and liquidity problems. Of the roughly 8,500 federally insured banks and thrifts, the FDIC had 171 on its confidential list of troubled institutions at the end of the third quarter.

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