The Nevada Financial Institutions Divisions closed down Henderson, NV-based Silver State Bank on September 5, and the Federal Deposit Insurance Corp. promptly entered into a purchase and assumption deal with Zions Bancorporation unit Nevada State Bank, in Las Vegas. Silver State branches reopened as Nevada State Bank and National Bank of Arizona offices on September 8.
Silver State held total assets of $2 billion and total deposits of $1.7 billion as of June 30. Nevada State Bank purchased the insured depots for 1.3 percent premium. An estimated $20 million of uninsured deposits were held in around 500 accounts. Some $700 million in brokered deposits were not included in the deal, and the FDIC will pay the brokers for the amount of the insured funds. The failure is the eleventh so far this year, and will draw down the agency’s Deposit Insurance Fund by another $450-$550 million.