By Kristine Thomas
The closure of Silver Falls Bank has resulted in three financial institutions opening in Silverton with a fourth pondering the move.
Citizens Bank opened Feb. 23 in the location of the former Silver Falls Bank, after the Oregon Department of Consumer and Business Services closed it Feb. 20. Willamette Valley Bank opens May 1, and MaPS Credit Union plans to open late spring or early summer. Valley Health and Postal Employees Credit Union says it is pondering a move, if the conditions are right.
The three newcomers join Chase – formerly Washington Mutual – Wells Fargo and West Coast banks.
Steve Way, who is a consultant for MaPS Credit Union and was the president of Silver Falls Bank, said Silver Falls Bank owned 40 percent of the market share in Silverton.
“You would not be seeing new banks coming to Silverton if Silver Falls Bank was still in business. Silver Falls Bank was keeping everyone out of town,” Way said. “Once the local player went away, it was a chance for someone to seize some of the market share.”
Silverton is one of the few communities in Oregon without a credit union, prompting MaPS Credit Union to locate there, Way said.
Another reason, Way said, is because MaPS wants to fill “the void left by the demise of Silver Falls Bank by providing scholarships to local students and helping sponsor local events. It wants to be involved in the community.”
Way said anyone who is a resident of Marion or Polk counties can join the credit union, which will be at 307 Main St.
Willamette Valley Bank President and CEO Neil D. Grossnicklaus said opening a branch in Silverton is a way to expand the bank’s presence. It has had a mortgage loan office in Silverton since 2007. The bank is currently located at 109 S. Water St., and plans to eventually either build or relocate to an existing building.
Three former Silver Falls employees with strong ties to the community and knowledge of local banking have been hired by Willamette Valley Bank, he added.
“Our business model is about developing personal relationships with our customers and providing them one-on-one service,” he said. Both Way and Grossnicklaus said the Silverton market is big enough to handle six banks, because each institution does business a little differently.
