RENO, Nev. (
) - The Office of the Comptroller of the Currency shut down
Nevada Security Bank
of on Friday, bring the this year's total number of bank failures to 83.
The bank was included in
of undercapitalized banks and thrifts, based on first quarter regulatory data provided by
The OCC appointed the Federal Deposit Insurance Corporation receiver of the failed bank and arranged for
of Roseburg, Ore. to assume Nevada Security Bank's $480 million in assets and $480 million in total deposits. Umpqua Bank is the main subsidiary of
The FDIC agreed to share in losses on $368 million of the acquired assets and estimated the cost to its deposit insurance fund would be $80.9 million.
The failed bank's five offices, including one in Roseville, Calif. that operated under the name of
were scheduled to reopen Monday as Umpqua branches.
This was Umpqua's third government-assisted acquisition of a failed bank this year, following
of Pierce, Wash. on Feb. 26 and
of Seattle, Wash. on Jan. 22.
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Nevada Security Bank had been assigned an E-minus (Very Weak) financial strength rating back in September by
. That rating was based on June 2009 financial reports showing that the bank was no longer
after a second quarter loss of $21 million.
Losses continued over subsequent quarters, and at March 31, the institution was critically undercapitalized with a tier 1 leverage ratio of 2.16% and a total risk-based capital ratio of 4.11%. These ratios need to be at least 5% and 10% for most banks to be considered well capitalized. Nonperforming assets comprised 16.33% of total assets as of March 31.
Ongoing Bank Failure Coverage
Nevada Security was the third bank closure in the state this year. Since the beginning of 2008, eight banks have failed in the state and a total of 248 U.S. banks and thrifts have failed.
All previous bank and thrift failures since the beginning of 2008 are detailed in
interactive bank failure map:
The bank failure map is color-coded, with the states having the greatest number of failures highlighted in red, and states with no failures in grey. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.
Free Financial Strength Ratings
features independent and very conservative financial strength ratings provided each quarter by
, for each of the nation's banks and savings and loans. The ratings are available at no charge.
Written by Philip van Doorn in Jupiter, Fla.
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.