Silver State Bank Fails, Taken Over by FDIC - 8 News NOW

Aaron Drawhorn, Reporter

Silver State Bank Fails, Taken Over by FDIC

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The FDIC moved in and Henderson Police remain on guard outside the troubled financial institution. The FDIC moved in and Henderson Police remain on guard outside the troubled financial institution.
Word of Silver State Bank's failure quickly spread. Word of Silver State Bank's failure quickly spread.

For the second time this summer, a Nevada bank has crumbled in the wake of record foreclosure numbers. The latest results show Nevada has some of the highest rates of new foreclosures in the U.S.

Now those failed loans have left Silver State Bank under federal control, and Monday they will open as Nevada State Bank branches.

The bank's troubles have mounted and late Friday it collapsed, leaving shocked customers wondering what's going to happen to their money.

Word of Silver State Bank's failure quickly spread. The FDIC moved in and Henderson Police remain on guard outside the troubled financial institution.

"The bank had to be closed in order to protect the depositors," said David Barr with the FDIC.

Barr and a team of more than 100 regulators took over Silver State at the close of business. With the current economic climate and real estate loans gone bad, Silver State went belly up.

"It was involved in making loans to developers and to those who wanted to acquire land for future development. Obviously, with the downturn in the housing, that does have an impact," said Barr.

Humberto Delia rushed to the Green Valley branch after hearing of Silver State's troubles, "I have three CD's here that are all insured. I have more than $100,000."

But Delia's fears were relieved when he was greeted by the CEO of Nevada State Bank. They will take over Silver State on Monday.

"This is an unfortunate situation that happened. We're in that cycle in the economy, and it happens. But for our company, with our financial strength, I think we can bring some comfort and security and safety and soundness to the clients here at Silver State Bank," said Nevada State Bank CEO Dallas Haun.

Some Silver State customers with more than $100,000 may never see some of their money again. But most customers, like Delia, are counting their blessings, "I'm going to sleep well tonight knowing the money's safe."

The bank has about $1.7 billion in deposits. Eyewitness News has learned some $20 million is uninsured. On average, people will only get about 72 cents on the dollar for their uninsured deposits.

Email your comments to Reporter Aaron Drawhorn

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