Another US Bank SHUTS DOWN! – June 18, 2010, TOTAL hits 83 for 2010.

On Friday, June 18, 2010, 1 BANK was CLOSED by U.S. regulators. The 1 failed institutions was located in Reno, Nevada. This brings the total number of US Bank Failures to 83 so far in 2010, compared to 140 in 2009, 25 in 2008 and 3 in 2007. If bank failures continue at this pace, an estimate of over 190 banks will fail in 2010. The failed bank had total ASSETS of approximately $480.3 Million and total deposits of approximately $479.8 Million. The Federal Deposit Insurance Corporation (“FDIC”) estimates the cost of the bank closure to its Deposit Insurance Fund (“DIF”) will be approximately $80.9 million.

Nevada Security Bank – Reno, Nevada, was closed by the Nevada Financial Institutions Division, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Umpqua Bank – Roseburg, Oregon, to assume all of the deposits of Nevada Security Bank. As of March 31, 2010, 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. Nevada Security Bank is the 83rd FDIC-insured institution to fail in the nation this year, and the third in Nevada. The last FDIC-insured institution closed in the state was Sun West Bank – Las Vegas, on May 28, 2010.

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 7,932 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

 (Source: Federal Deposit Insurance Corporation)

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