SILVERTON, Ore., Feb. 21 (UPI) -- Oregon state regulators say they have moved to close the second state-chartered bank within a week.
The state's Department of Consumer and Business Services Friday closed Silver Falls Bank of Silverton, Ore., which officials say had a loan portfolio filled with poor-performing construction and development loans, The Oregonian reported in Portland.
Silver Falls was a 7-year-old institution with three branches and total assets of $131 million. Its closure came only days after regulators also shuttered Pinnacle Bank in Beaverton, Ore., the newspaper said, and two months after Washington state regulators closed nearby Bank of Clark County in Vancouver, Wash.
David Tatman, administrator of the state's Division of Finance & Corporate Securities, said Silver Falls had been experiencing critically low levels of capital. He told The Oregonian that like many other Northwest banks, Silver Falls' problems resulted from the floating of poorer quality construction loans that became vulnerable when the economy deteriorated.
