The “Biggest Little City in the World” was home to this year’s 83rd bank failure.
On Friday, the Nevada Financial Institutions Division shut down Nevada Security Bank and appointed the Federal Deposit Insurance Corporation as receiver.
The Reno-based bank was established in 2001 and had 78 employees. Total assets of $480 million included $220 million in commercial mortgages, $55 million in construction-and-development loans and just $15 million in one- to four-unit residential loans.
In March, the FDIC issued a prompt corrective action against the bank, while an FDIC cease-and-desist order was issued in June 2009.
Umpqua Bank assumed the failed institution’s $480 million in deposits at par. It also acquired all of Nevada Security’s assets.
Factoring in an FDIC agreement to share in losses on $368 million of the assets, the FDIC expects its Deposit Insurance Fund to lose $81 million as a result of Nevada Security’s failure — the 83rd FDIC-insured bank failure this year.
From Jan. 1 to June 21, MortgageDaily.com has tracked to closing of 104 mortgage-related businesses.