Klamath Falls only locally-owned bank is being sold to Washington Federal.
South Valley Bank and Trust President Bill Castle says the sale comes at the right time for the nearly 400 shareholders of the company…
“Our owners have suffered just like many others in this recession, in that there’s been very little liquidity in their investments, no dividend payouts.”
News that South Valley will soon be Washington Federal has caught many customers like Ike Shirts off-guard…
“Hopefully, they’ll be just as good a bank as this one.” Shirts has been banking with South Valley for about 5 years, and describes the experience as ‘real good’.
Bill Castle notes that South Valley employs 275 people at their two dozen branches…
“As with any merger transaction, you would expect that there would be a certain level of consolidation and displacement. But on total, we expect our employees to go forward with Washington Federal.”
Ike Shirts hopes that Washington Federal will still have free checking…
“Some of these banks, will give you free money to open an account, but then they get that back in a year by charging your for having a checking account.”
Castle says the changeover will take about 4 months…
“In due time, we would expect our banners to change to Washington Federal, our signage – South Valley Bank and Trust name goes away.”
South Valley Bank opened in 1977.
Under the sale agreement, South Valley shareholders will get between 33 and 39 million dollars worth of Washington Federal stock.
The merger will make Washington Federal Oregon’s seventh-largest bank.
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