Two more Banks Failed and Seized by FDIC

The FDIC took over two more banks. According to The Wall Street Journal, "The Office of the Comptroller of the Currency, a division of the Treasury Department, revoked the charters of First National Bank of Nevada, based in Reno, Nev., and First Heritage Bank of Newport Beach, Calif. The FDIC was appointed receiver of both banks." The Nevada bank had over $3 billion in deposits.

Current estimates are that less than 100 banks will fail during the current credit crisis, a much smaller number than closed during the saving and loan debacle of the late 1980s.

Federal regulators on Friday declared First National Bank of Nevada and its affiliates insolvent and the FDIC was named receiver. The FDIC Board of Directors approved the assumption of more than $3 billion in deposits by Mutual of Omaha Bank. FDIC will retain most of First National's loan portfolio.
"We would first like to reassure all customers of First National Bank of Nevada and First Heritage Bank that all their deposits are safe and accessible." Schmid said. "Their deposits will automatically transition to Mutual of Omaha Bank and we will be open for business on Monday morning."

First National Bank of Nevada operated 15 branches in Arizona and 10 branches in Nevada. First Heritage Bank, which specializes in commercial banking, operated three locations in the Los Angeles area. As of Monday, all became branches of Mutual of Omaha Bank. The acquisition also includes two First National operations: the Wealth Management Division and Community Association Banc, which serves neighborhood and condominium homeowners associations.