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Sorry to be so late with this. At 7:00 PM CDT nothing had been posted as having failed. I had dinner, watched The Yankees lose in a wretched fashion to the N.Y. Mets (BOO! HISS!), finally came back to the computer and discovered we DID have a bank failure today. So, here goes




Press Releases
Umpqua Bank, Roseburg, Oregon, Assumes All of the Deposits of Nevada Security Bank, Reno, Nevada

FOR IMMEDIATE RELEASE
June 18, 2010
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

Nevada Security Bank, Reno, Nevada, was closed today by the Nevada Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume all of the deposits of Nevada Security Bank.

The five branches of Nevada Security Bank will reopen on Monday as branches of Umpqua Bank. Depositors of Nevada Security Bank will automatically become depositors of Umpqua Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Nevada Security Bank should continue to use their existing branch until they receive notice from Umpqua Bank that it has completed systems changes to allow other Umpqua Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Nevada Security Bank can access their money 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.

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. Umpqua Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-356-1848. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/nevsecbank.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $80.9 million. Compared to other alternatives, Umpqua Bank's acquisition was the "least costly" resolution for the FDIC's DIF. 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.

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