For immediate release
LAS VEGAS, NV - Nevada State Bank officials announced today that the bank has agreed, in a whole bank transaction, to acquire the banking operations of Great Basin Bank of Nevada in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC).
Branches previously owned and operated by Great Basin Bank of Nevada, headquartered in Elko, Nev., will reopen on Monday morning as branches of Nevada State Bank, Nevada's oldest state-chartered bank. All Great Basin clients will automatically become clients of Nevada State Bank, said Dallas Haun, president and chief executive officer of Nevada State Bank.
The acquisition is effective at the close of business on Friday, after state regulators declared Great Basin Bank of Nevada insolvent and named the FDIC as receiver. The FDIC Board of Directors then approved the whole bank acquisition of Great Basin Bank by Nevada State Bank, which includes all loans, deposits and assets.
"Our first order of business is to welcome Great Basin clients to Nevada State Bank and to assure them that their deposits are safe, sound and readily accessible," Haun said. "Nevada State Bank is healthy, with a strong balance sheet and capital ratios, as well as a history of serving our Nevada communities. We look forward to welcoming our new clients when we open our new Nevada State Bank branches for business as usual on Monday morning." Clients of Great Basin Bank should continue to use their existing branches, checks, ATM or debit cards. If former Great Basin Bank clients have any questions regarding their accounts involved in this transaction, they should continue to use the same channels as they have in the past, including contacting their local branch.
Much like last fall, when Nevada State Bank acquired the insured deposits of Silver State Bank in Southern Nevada, Haun said this is an opportunity for Nevada State Bank to ensure that communities in Nevada continue to be served by a locally managed, community-focused bank. He said it also enables Nevada State Bank to expand its reach and network of freestanding branches throughout the state, especially in rural Nevada.
"Being the successful bidder to acquire this bank speaks volumes about the financial strength and success of Nevada State Bank," Haun added. "Such growth reinforces our commitment to provide personalized services to businesses and consumers in this state for at least another 50 years."
Before this acquisition, Nevada State Bank, a wholly owned subsidiary of Zions Bancorporation, operated 53 branches statewide and listed assets of more than $4 billion. As new clients of Nevada State Bank, Great Basin Bank clients will have full access to a wide array of deposit and loan products once consolidation occurs.
Great Basin Bank of Nevada operated five bank branches, all in Northern Nevada. They include two branches in Elko, one in Spring Creek (southeast of Elko), one in Fallon and one in Winnemucca. The transaction includes approximately $220 million of deposits and $238 million of assets, including the loan portfolio of Great Basin Bank.
"Under the terms of the transaction, the FDIC will make an initial payment to Nevada State Bank and assume 80 percent of the first $40 million of credit losses. Any credit losses in excess of $40 million are borne 95 percent by the FDIC," Haun said.
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Editor's note: Contact Sandi Milton at Nevada State Bank for a list of local NSB clients available for interviews.