LibertyBank, which has two branches in Medford, was closed Friday by federal regulators, who then brokered a deal to allow an Idaho-based bank to purchase its assets, according to the Federal Deposit Insurance Corp., or FDIC.

LibertyBank, which has two branches in Medford, was closed Friday by federal regulators, who then brokered a deal to allow an Idaho-based bank to purchase its assets, according to the Federal Deposit Insurance Corp., or FDIC.

LibertyBank customers are allowed to write checks and use their debit cards throughout the weekend without interruption. Checks drawn on the bank will be processed, the FDIC said.

The bank now is owned by Home Federal Bank, of Nampa, Idaho. It will open for business on Monday at regular hours, the FDIC said.

LibertyBank, based in Eugene, operated two Medford branches, one on Biddle Road and the other on Barnett Road.

Other branches were in Grants Pass, Bend, Eugene, Portland, Springfield and Redmond, for a total of 15 locations statewide.

A story published in October in the Mail Tribune noted that Eugene-based Liberty Bank ranked in the bottom 12 percentile of its peer group. Bauer Financial of Florida, which tracks bank performance, included Liberty Bank on its list of troubled banks.

The story noted that Liberty Bank's troubled assets had climbed from $52 million in 2008 to nearly $80 million in 2009.

As of March 31, 2010, LibertyBank had approximately $768.2 million in total assets and $718.5 million in total deposits. Home Federal Bank paid the FDIC a premium of 1.0 percent for the deposits of LibertyBank.

In addition to assuming all of the deposits of the failed bank, Home Federal Bank agreed to purchase approximately $419.7 million of the failed bank's assets, the FDIC said.

The FDIC and Home Federal Bank entered into a loss-share transaction on $300 million of LibertyBank's assets. Home Federal Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

Customers who have questions about Friday's transaction can call the FDIC toll-free at 1-800-523-8159. The number will be operational today from 9 a.m. to 6 p.m. and on Sunday from noon until 6 p.m. From then it will be operational from 8 a.m. to 6 p.m.

Interested parties also can visit the FDIC's website at http://www.fdic.gov/bank/individual/failed/libertyor.html.