- Closed Bank: Silver Falls Bank
- Location: Silverton, OR
- Size: 3 branches, $131.4 million assets, $116.3 million deposits
- Possible Uninsured Deposits: ALL deposits Transferred
- Acquiring Bank: Citizens Bank, Oregon
- Cost to Deposit Insurance Fund: $50 million (estimated)
- Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
Silver Falls Bank had been experiencing critically low levels of capital, and ultimately, became insolvent. The bank's problems resulted primarily from a heavy dependence on commercial construction loans, many of which were of poorer quality and were not performing or being repaid when the economy deteriorated.
This closure involved another All-Deposit Transfer transaction in which all deposits, even those above the FDIC limits, were transferred to the assuming bank. So no depositor should have lost any money. This includes brokered deposits.
Another thing common with this closure is that the assuming bank hasn't decided if it will honor existing CD rates to maturity. Here's what Q&A #5 states:
Be advised, however, that from and after the date of closing, the Citizens Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, the Citizens Bank shall permit depositors, including brokered depositors, to withdraw their deposits without penalty for early withdrawal.
As this shows, one risk of having your money in a failed bank is the loss of the rate lock. If you had a high-rate long-term CD, it's going to be difficult to find something comparable in today's low-rate environment.