Reno Bank Shut Down by Regulators

For the second weekend in a row, banking regulators closed the doors on just one institution, as opposed to the massive rounds of failures â€" which saw four, five, even[IMAGE] seven banks closed in one sweep â€" that the industry has grown accustomed to since the financial crisis took hold.

This weekend, it was ""Nevada Security Bank"":http://www.nevadasecuritybank.com/nevsecbank_draft_transfer.html in Reno that met its demise. The closing brings the number of ""FDIC-insured bank failures"":http://www.fdic.gov/bank/individual/failed/banklist.html for the year to 83 â€" more than twice the number of seizures at this time in 2009.

Nevada Security Bank operated nine branch offices, with $479.8 million in deposits, and assets totaling approximately $480.3 million. The FDIC brokered a deal

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with ""Umpqua Bank"":http://www.umpquabank.com in Roseburg, Oregon, to take over the failed institution, including its California division, ""Silverado Bank"":http://www.silveradobank.com/silverado_nevsecbank_transfer.html. It's Umpqua's third acquisition of a seized institution this year.

""While Umpqua Bank is a new name in Nevada, we have 57 years of history in the Pacific Northwest,"" said Ray Davis, CEO of parent company Umpqua Holdings Corporation. ""We are pleased to help restore financial footing … and look forward to bringing new lending opportunities to the community. We anticipate this to be a smooth transition, and we are looking forward to becoming an active member of the Northern Nevada region.""

Umpqua Bank did not pay the FDIC a premium for the deposits of Nevada Security Bank. In addition to assuming all the deposits, Umpqua agreed to purchase essentially all of the failed bank's assets, which according to a statement from Umpqua, it received for a discount bid of 4.9 percent.

The FDIC agreed to share in any future losses on $342 million in loans Umpqua acquired from Nevada Security.

The Reno bank's failure is expected to cost the FDIC an estimated $80.9 million. It is the third institution in Nevada to go under this year.