- FDIC Creates Deposit Insurance National Bank to Facilitate the Resolution of Community Bank of Nevada
- August 28, 2009
- Law Firm: Alston & Bird LLP - Atlanta Office
Earlier today, the Nevada Financial Institutions Division ordered the closing of Community Bank of Nevada, headquartered in Las Vegas, Nevada, and the FDIC was named as receiver. As receiver, the FDIC created the Deposit Insurance National Bank of Las Vegas (DINB), which will remain open for 30 days to allow depositors access to their insured deposits and time to open accounts at other banks. Immediately after taking over as receiver, the FDIC transferred all secured public unit deposits and insured deposits (except for brokered deposits, CDs and IRAs) of Community Bank to DINB. The FDIC entered into a contract with Nevada State Bank to provide the operational management of the DINB.
As of June 30, 2009, Community Bank of Nevada had total assets of $1.52 billion and total deposits of approximately $1.38 billion. At closing, there were approximately $4.2 million of insured deposits that may exceed the insurance limits. The uninsured deposits of Community Bank of Nevada were not transferred to the DINB.
The FDIC estimates the cost to the Deposit Insurance Fund will be $781.5 million. Community Bank of Nevada is the 77th bank to fail in the nation this year and the third in Nevada.