Spokane in Bank Rescues Beaverton in Beaverton

Spokane's Washington Trust Bank purchased the assets of Beaverton's Pinnacle Bank.

clipped from www.oregonlive.com Pinnacle Bank fails; Oregon's first in 17 years by Jeff Manning, The Oregonian Friday February 13, 2009, 9:29 PM Oregon suffered its first bank failure in 17 years Friday afternoon when state regulators closed Pinnacle Bank, a small, one-office institution in Beaverton. The deepening recession has led to a surge in bad loans at banks across the country. The bad loans have weakened some banks' balance sheets to the point that regulators have stepped in and closed their doors. Pinnacle was a tiny bank with only $73 million in total assets and $64 million in deposits. Pinnacle, like Bank of Clark County, suffered not only loan quality issues, but also significant liquidity issues. Washington Trust bought the Pinnacle assets for $66.4 million and agreed to assume all deposits of Pinnacle. It also entered into a loss-sharing agreement with the Federal Deposit Insurance Corp. that limits the bank's potential losses on the loans it is acquiring, said FDIC spokesman David Barr.