PRESS RELEASE
Klamath Falls, Ore – July 23, 2010 – South Valley Bank & Trust announced today that it has acquired the banking operations of Home Valley Bank, Grants Pass, Oregon in a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC).
With this transaction, South Valley will enter the Grants Pass region with branches in the Grants Pass and Cave Junction communities. This expansion will represent the 4th region in the South Valley footprint, adding to the existing regions of South Central Oregon, Klamath Falls, and South Eastern Oregon.
As of June 30, 2010, Home Valley Bank had approximately $248 million in assets and $228 million in deposits. As apart of the transaction, South Valley will acquire $202 million in loans, which are subject to a loss-sharing agreement with the FDIC. The transaction will increase South Valley’s assets to approximately $864 million based on South Valley’s balances at June 30, 2010.
“South Valley Bank & Trust is excited to become a part of the Grants Pass Region and looks forward to being able to continue the proud tradition of community-based banking throughout the historic Grants Pass and Cave Junction communities,” said William E. Castle, President and Chief Executive Officer, South Valley Bank & Trust. “We welcome the former Home Valley clients into our network of 23 South Valley branches serving all of Central and Southern Oregon. Clients will be able to conduct their banking business as usual during the regular business hours that they have heretofore been accustomed to, and their deposits are safe, accessible and remain FDIC insured to the maximum limits provided by law. South Valley looks forward to working with the Home Valley team, who have served their community so well.”
Home Valley’s 5 branches will reopen for business on Monday, July 26, 2010. Customers with questions can visit South Valley’s website at www.southvalleybank.com and the FDIC’s website at www.FDIC.gov. Customers can also visit their former Home Valley branch location with questions.
South Valley Bank & Trust participated in a competitive bid process, whereby it agreed to assume all non-brokered deposits and nearly all of the assets of Home Valley Bank. The accepted bid included a 1.05% deposit premium on all non-brokered deposits.
Advisory services for the transaction were provided to South Valley by D.A. Davidson & Co.
About South Valley Bank & Trust
Headquartered in Klamath Falls, Oregon, South Valley Bank & Trust is an Oregon, state-chartered full service commercial bank, with the additional authority to provide a full range of Trust related products and services. With the July 23, 2010 FDIC-assisted acquisition of Home Valley Bank, South Valley Bank & Trust has 23 banking offices in 9 counties throughout Central and Southern Oregon. For additional information please visit our website at www.southvalleybank.com
Home Valley Bank
Frequently Asked Questions
The FDIC has put together some responses to frequent issues or questions bank customers may have following a bank failure. These should assist you in understanding what is happening at your bank.
On July 23, 2010, Home Valley Bank, Cave Junction, OR, was closed by the Oregon Department of Consumer and Business Services. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, South Valley Bank & Trust, Klamath Falls, OR acquired all the deposits and essentially all of the assets of Home Valley Bank from the FDIC as Receiver.
Share price does not trigger a bank’s closing and was not the reason for Home Valley Bank’s failure. YOUR MONEY IS SAFE! No one lost any money on deposit as a result of the closure of this institution.
ACCESS TO YOUR MONEY: The total balance in your account(s), including checking, savings, money market, non-brokered Certificates of Deposit, and retirement accounts, has been transferred to the new bank and will be available for transactions during regular business hours at the former bank branches.You may continue to use your outstanding checks and they will clear up to the balance in your account. Your ATM/Debit card will continue to work as usual.
DIRECT DEPOSITS: All direct deposits, for example, social security checks, payroll, veteran’s benefits, welfare and/or disability, unemployment or any payment you receive electronically will continue as usual.
AUTOPAYMENTS/BILLPAY: These services will continue as usual.
INTEREST RATES:
Interest on deposits accrued through close of business the day the bank was closed will be paid at your same rate. Current rates will be reviewed by the acquiring institution and may be lowered; however, you may withdraw funds from any transferred account without early withdrawal penalty until you renew your Certificate of Deposit.
BROKERED DEPOSITS: As an All-Deposits Transfer transaction, the total of all deposit accounts, have been assumed by South Valley Bank & Trust. If you are a customer who has a Home Valley Bank deposit through a broker, you must contact your broker with any questions.
SAFE DEPOSIT BOXES:
You may continue to access your safe deposit box during normal business hours. Any changes will be communicated by the new bank.
OVERDRAFT LINES OF CREDIT:
These lines have been transferred to the assuming bank. Please contact the new bank if you have additional questions regarding your accounts.
LOAN PAYMENTS: You should continue to make your payments according to the terms of your written contract. You may continue to make your payments at the branch office or send it to the same payment address with checks made payable to the old institution.
ESCROW PAYMENTS: All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, notify your loan officer immediately.
LOANS IN PROCESS: Please contact your current loan officer directly.
SHARES OF STOCK: All shares of stock were owned by the holding company, Home Valley Bancorp, Inc., Grants Pass, OR. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of the holding company, please do not contact or file a claim with the receiver. You must contact the holding company directly for more information:
Home Valley Bancorp Inc.
110 SW 4th Street
Grants Pass, OR 97526
541-476-4663
CLAIMS: Please send claims for unpaid bills to the following address:
FDIC as Receiver for Home Valley Bank
40 Pacifica, Suite 100
Irvine, CA 92618
or by email at:
DEPOSIT INSURANCE INFORMATION: If you have accounts in both the failed and the assuming institution, they will be insured separately for at least six months following the merger of the institutions. This will allow you time to restructure your accounts if necessary.
ADDITIONAL QUESTIONS: You may contact the FDIC Call Center at the number provided below with any additional questions
1-800-528-4893
HOURS OF OPERATION – ALL HOURS ARE PACIFIC TIME ZONE
Friday, June 23, 2010: Until 9:00 PM
Saturday, June 24, 2010: 9:00 AM – 6:00 PM
Sunday, June 25, 2010: 12:00 PM – 6:00 PM
Thereafter: 12:00 PM – 6:00 PM
Additional information:
