SALEM - Home Federal Bank of Idaho has bought the failed Community First Bank, which serves central Oregon.
Community First Bank is the third bank to fail this year in Oregon. In February, Pinnacle Bank in Beaverton and Silver Falls Bank in Silverton has to close. Other banks also bought the failed banks.
No Oregon depositor, though, has lost money as the result of a bank closure.
The Oregon Department of Consumer and Business Services ordered Community First Bank to close because it had critically low levels of capital and became insolvent. A department news release said the bank's problems resulted primarily from a heavy dependence on residential construction loans, many of which were of poorer quality and were not performing or being repaid when the economy deteriorated
Community First Bank's main office is in Prineville, and it has seven branch offices in Bend, Redmond, Madras, La Pine and Terrebone.
All of Community First Bank's deposit accounts are available at Home Federal Bank.
The 29-year-old Community First Bank had about $210 million in total assets and $178 million in deposits as of March 31. Home Federal Bank, based in Nampa, Idaho, has $660 million in total assets and $376 million in total deposits. Home Federal Bank opened in 1920 and has 15 branches throughout the Treasure Valley region in southwestern Idaho.
- Phil Wright