Nevada State Bank Acquires Insured Deposits Of Failed Silver State Bank

Henderson, Nev.-based Silver State Bank has been closed by the Nevada Financial Institutions Division, and the Federal Deposit Insurance Corp. (FDIC) has been named receiver. To protect the depositors, the FDIC says it has entered into a Purchase and Assumption Agreement with Nevada State Bank, based in Las Vegas, to assume the insured deposits of Silver State Bank.

The Nevada branches of Silver State Bank have opened as Nevada State Bank, and the Arizona branches are now under the name National Bank of Arizona. Depositors of the failed bank will automatically become depositors of Nevada State Bank or National Bank of Arizona. Deposits will continue to be insured by the FDIC. There is no need for customers to change their banking relationship to retain their deposit insurance coverage, the FDIC notes.

As of June 30, Silver State Bank had total assets of $2.0 billion and total deposits of $1.7 billion. Nevada State Bank agreed to purchase the insured deposits for a premium of 1.3 percent. At the time of closing, there were approximately $20 million in uninsured deposits held in approximately 500 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

Further information is available at http://www.fdic.gov/bank/individual/failed/silverstate.html.

Source: Federal Deposit Insurance Corp.

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