On Friday, the Oregon Division of Finance and Corporate Securities closed Columbia River Bank, headquartered in Dalles, Oregon, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, headquartered in Tacoma, Washington, to assume all of the deposits of Columbia River Bank. Columbia State Bank will pay the FDIC a premium of 1.0% to assume all of the deposits of the failed bank.
As of September 30, 2009, the failed bank had approximately $1.1 billion in total assets and $1 billion in total deposits. Columbia State Bank also agreed to purchase essentially all of the failed bank’s assets. The FDIC and Columbia State Bank entered into a loss-share transaction on $697.4 million of Columbia River Bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $172.5 million. Columbia River Bank is the ninth FDIC-insured institution to fail in the nation this year and the first to fail in Oregon since Community First Bank on August 7, 2009.