Nevada Security Bank Closes; Assets Moved To Umpqua Bank

Posted by Orb Staff on June 21, 2010 No Comments
Categories : Residential Mortgage

Security Bank, of Reno, Nev., was the lone bank closing Friday. The Nevada Financial Institutions Division closed the bank and appointed the Federal Deposit Insurance Corp. (FDIC) as receiver. The FDIC has entered into a purchase-and-assumption agreement with Roseburg, Ore.-based Umpqua Bank to assume all of the deposits of Nevada Security Bank. As of March 31, Nevada Security Bank had approximately $480.3 million in total assets and $479.8 million in total deposits. Umpqua Bank did not pay the FDIC a premium for the deposits of Nevada Security Bank. In addition to assuming all of the deposits of the failed bank, Umpqua Bank agreed to purchase essentially all of the assets. The FDIC and Umpqua Bank entered into a loss-share transaction on $368.2 million of Nevada Security Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $80.9 million. Nevada Security Bank is the 83rd FDIC-insured institution to fail in the nation this year, and the third in Nevada. SOURCE: [link=http://www.fdic.gov/news/news/press/2010/pr10137.html]Federal Deposit Insurance Corp.

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