Nevada State Bank announced 14 August 2009 that it will assist the Federal Deposit Insurance Corporation (FDIC) by acting as Payout Agent in the resolution of Community Bank of Nevada, based in Las Vegas, which was closed by the Nevada Financial Institutions Division and the FDIC was appointed as receiver. The FDIC has established a new temporary institution, Deposit Insurance National Bank of Las Vegas (DINB), an FDIC-insured bank. The newly chartered DINB is assuming transactional accounts and certain other deposits of Community Bank of Nevada.
The FDIC has arranged for Nevada State Bank to assist in managing the deposit accounts. Direct deposit, checks, ATMs and debit cards will work normally. All twelve former Community Bank of Nevada branches will be open Monday, August 17 as branches of the new Deposit Insurance National Bank of Las Vegas for an interim transition period, after which the new bank will be closed. Nevada State Bank will oversee the new bank in providing banking services to former Community Bank of Nevada customers.
“We’re really here to help. This is an extremely difficult situation for everyone but we are prepared to answer questions, provide support and comfort, and assist former Community Bank of Nevada clients into new banking relationships,” said Dallas Haun, president and CEO of Nevada State Bank. “We are honored to be asked to assist the FDIC with their efforts and continue to support our fellow Nevadans through troubled times.”
He adds that, “this was not a situation where Nevada State Bank bid for the assets or deposits of Community Bank of Nevada, but rather we were asked to provide services to help facilitate depositors in this transition period. Nevada State Bank acquired two other failed institutions in the past 12 months—Silver State Bank in September of 2008 and Great Basin Bank in April of 2009, and we feel that our experience working in similar cases will help us provide a smooth transition for Community Bank clients. Indeed, our goal is to ensure that former Community Bank clients have as smooth a transition as possible during such a stressful time.”
Source: Press Release, dated 14 August 2009.
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