Silver State Bank was a failed

Nevada Nevada ( ; ) is a U.S. state, state in the Western United States, Western region of the United States. It is bordered by Oregon to the northwest, Idaho to the northeast, California to the west, Arizona to the southeast, and Utah to the east. N ...

commercial bank A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with cor ...

with 17 branches in the

Las Vegas Las Vegas (; Spanish for "The Meadows"), often known simply as Vegas, is the 25th-most populous city in the United States, the most populous city in the state of Nevada, and the county seat of Clark County. The city anchors the Las Vegas ...

and

Phoenix Phoenix most often refers to: * Phoenix (mythology), a legendary bird from ancient Greek folklore * Phoenix, Arizona, a city in the United States Phoenix may also refer to: Mythology Greek mythological figures * Phoenix (son of Amyntor), a ...

metropolitan areas and loan operations across the western United States. The bank's assets were acquired by

Zions Bancorporation Zions Bancorporation is a bank holding company headquartered in Salt Lake City, Utah. Zions Bancorporation originated as Keystone Insurance and Investment Co., a Utah Corporation, in April 1955. In April 1960, Keystone, together with several in ...

, a bank holding corporation with $2 billion in assets.

History

Silver State Bank was a community bank founded in 1996 operating in the Las Vegas metropolitan area. On September 5, 2006, Silver State Bancorp, the bank's holding company, acquired Choice Bank in the Phoenix/Scottsdale region of Arizona, and merged operations in 2008.

Failure

On September 5, 2008, the bank was closed by the Nevada Financial Institutions Division and placed under

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures cred ...

(FDIC) receivership. Nonbrokered FDIC-insured accounts in Nevada were transferred to Nevada State Bank, while those in Arizona were transferred to National Bank of Arizona, both of which are operating subsidiaries of Zions Bancorporation. The bank was the 11th insured commercial bank to fail in 2008, compared to three in all of 2007. An estimated $450 to $550 million in losses are expected to be covered by the FDIC Deposit Insurance Fund. Some customers, who did not understand FDIC insurance limits, sustained losses of deposits they believed safe. Uninsured deposited amounted to $20 million in 500 accounts. The underlying cause of failure was overexposure to risky real estate loans, especially mortgages on undeveloped land purchased for home construction that was no longer viable following the collapse of the

housing bubble A housing bubble (or a housing price bubble) is one of several types of asset price bubbles which periodically occur in the market. The basic concept of a housing bubble is the same as for other asset bubbles, consisting of two main phases. Firs ...

Andrew McCain

The ''Wall Street Journal'' reported that Andrew McCain, son of Republican presidential candidate

John McCain John Sidney McCain III (August 29, 1936 – August 25, 2018) was an American politician and United States Navy officer who served as a United States senator from Arizona from 1987 until his death in 2018. He previously served two terms ...

, sat on the board of Silver State Bank for five months in 2008, resigning on July 26 for "personal reasons," shortly before he would have had to sign off on second-quarter audit statements.

References

External links

* {{Webarchive, url=https://archive.today/20070102234458/http://silverstatebank.com/, title=Silver State Bank Bank failures in the United States Banks established in 1996 Banks based in Nevada Banks disestablished in 2008 Defunct companies based in Nevada 1996 establishments in Nevada 2008 disestablishments in Nevada Defunct banks of the United States