FIs closed: Home Valley Bank, Cave Junction, Oregon, USA
On Friday, 23 July, 2010, Home Valley Bank, Cave Junction, Oregon, was closed by the Oregon Department of Consumer and Business Services, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with South Valley Bank & Trust, Klamath Falls, Oregon, to assume all of the deposits of Home Valley Bank.
The five branches of Home Valley Bank reopened on Monday as branches of South Valley Bank & Trust.
As of 31 March, 2010, Home Valley Bank had approximately USD251.80 million in total assets and USD229.6 million in total deposits.
South Valley Bank & Trust will pay the FDIC a premium of 1.05 percent to assume all of the deposits of Home Valley Bank. In addition to assuming all of the deposits of the failed bank, South Valley Bank & Trust agreed to purchase essentially all of the assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be USD37.1 million.
Home Valley Bank is the 103rd FDIC-insured institution to fail in the USA this year and the second in Oregon.
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