The Federal Deposit Insurance Corporation (FDIC) has entered into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume all of the deposits of Nevada Security Bank, which was closed by the Nevada Financial Institutions Division.
As of March 31, 2010, Nevada Security Bank had approximately $480.3m 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 five branches of Nevada Security Bank has reopened as branches of Umpqua Bank, where depositors of Nevada Security Bank have automatically become depositors of Umpqua Bank.
According to FDIC, 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.
The FDIC and Umpqua Bank has entered into a loss-share transaction on $368.2m of Nevada Security Bank’s assets. Umpqua Bank will share in the losses on the asset pools covered under the loss-share agreement.