This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Second Nevada Bank Fails

Silver State Bank of Henderson, Nev., was shuttered on Friday by the Nevada Financial Institutions Division, which cited "extremely unsafe and unsound practices and conditions."

The $2 billion bank was the second Nevada institution to fail this year, bringing the national total of bank and thrift failures to 11.

Silver State's insured deposits were acquired by Nevada State Bank of Las Vegas, which is held by Zions Bancorp (ZION - Get Report). Ratings had assigned Silver State Bank of Henderson a financial strength rating of D (Weak) on the basis of first-quarter financial results.

Uninsured deposits totaled about $20 million in 500 customer accounts. When a bank is closed down and the FDIC appointed receiver, customers with uninsured deposits become creditors to the receivership for the amount of their uninsured balances. After a failed institution's assets are disposed of, the uninsured depositors may receive partial or full payments called "dividends." Unlike depositors at several other banks that closed this year, Silver State's uninsured depositors received no advance dividends from the FDIC.

The previous Nevada bank failure was First National Bank of Nevada, which was shuttered by the Office of the Comptroller of the Currency on July 25.

As with so many failed institutions this year, the main problem was an over-concentration in construction and development loans, which comprised 55% of Silver State's total assets as of June 30. For the second quarter, Silver State reported a net loss of $72.7 million and was considered below well-capitalized as of June 30, since its risk-based capital ratio dropped to 8.86%. This ratio needs to be at least 10% for a bank or thrift to be considered well-capitalized according to regulatory guidelines.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ZION $26.42 0.00%
WB $12.93 0.00%
WM $53.40 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs