Nevada Security Bank taken over by regulators

The Nevada Financial Institutions Division today announced that it has taken possession of Nevada Security Bank in Reno, and appointed the Federal Deposit Insurance Corporation as receiver.

As of May, 2010, Nevada Security Bank had total assets of approximately $495 million and total deposits of approximately $482 million. Nevada Security Bank had three branches in Reno, a branch in Incline Village and Silverado Bank, a division of Nevada Security Bank, in Roseville, Calif.

"Nevadans can be confident that their deposits are safe," said FID Commissioner George E. Burns. "Deposits are insured by the FDIC for up to the maximum under FDIC rules and regulations. All deposits of Nevada Security Bank will be assumed by Oregon-based Umpqua Bank."

Customers of Nevada Security Bank may phone the FDIC at 1-800-823-5017 for additional information about their deposits and the receivership of the bank.

"Due to inadequate capital and mounting loan losses, it was necessary to close Nevada Security Bank and appoint the FDIC as receiver," said Burns. "We are committed to protecting the public interest and ensuring that Nevada's banking system continues to be fundamentally safe and sound."

Nevada Security Bank customers will continue to have access to banking services over the weekend, and normal business hours and access to banking services will continue on Monday, as branches of Umpqua Bank.

Over the weekend, Nevada Security Bank's depositors can access their deposits by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Customers may phone the Financial Institutions Division at (702) 486-4120 for additional information regarding Nevada Security Bank.

Bank customers with questions about today's transaction or who would like more information about the closing of Nevada Security Bank can call the FDIC toll-free at (866) 934-8944, today until 9 p.m., 9 a.m. to 5 p.m. Saturday, noon to 5 p.m. Sunday, and thereafter from 8 a.m. to 5 p.m. All times are Eastern Standard Time.