Nevada Bank is 83rd Failure; Cost to FDIC Fund $81M

FDICA Reno-based Nevada bank will cost the Federal Insurance Deposit Corp. nearly $81 million as the five-branch institution becomes the 83rd bank failure this year.
All branches of Nevada Security Bank will reopen on Monday as branches of Umpqua Bank, of Roseburg, Oregon.
As of March 31, Nevada Security Bank had about $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 the Nevada bank.
In addition to assuming all of the deposits of the failed bank, Umpqua Bank agreed to purchase essentially all of the assets.
“Due to inadequate capital and mounting loan losses, it was necessary to close Nevada Security Bank and appoint the FDIC as receiver,” said Nevada’s Financial Institutions Commissioner George Burns in a statement.
U.S. banks will pay more than $45 billion before year’s end to cover premiums through the next three years, under an FDIC plan approved in November to replenish its insurance fund.
The FDIC has said it is well positioned to fund resolution activity through 2010 and beyond, assuming bank failures peak this year as is expected.
The FDIC insures up to $250,000 per account.
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