Failed Banks: First National Bank of Nevada and First Heritage Bank, N.A

The FDIC reports two failed banks this weekend

• First National Bank of Nevada, Reno, Nevada, with approximately $3.4 billion in assets was closed. Mutual of Omaha Bank, Omaha, Nebraska has agreed to assume all deposits (approximately $3.0 billion). On June 30, 2008, First National Bank of Arizona, Scottsdale, Arizona, merged with First National Bank of Nevada and was included in this action. (PR-63-2008)
• First Heritage Bank N.A., Newport Beach, California, with approximately $254 million in assets was closed. Mutual of Omaha Bank, Omaha, Nebraska has agreed to assume all deposits (approximately $233 million). (PR-63-2008)

Details from the FDIC Press Release

The cost of the transactions to the Deposit Insurance Fund is estimated to be $862 million. The failed banks had combined assets of $3.6 billion, .03 percent of the $13.4 trillion in assets held by the 8,494 institutions insured by the FDIC.

The 28 offices of the two banks will reopen on Monday as branches of Mutual of Omaha Bank. All depositors, including those with deposits in excess of the FDIC's insurance limits, will automatically become depositors of Mutual of Omaha Bank for the full amount of their deposits. Depositors will continue to be insured with Mutual of Omaha Bank so there is no need for customers to change their banking relationship to retain their deposit insurance.

Over the weekend, customers of the banks can access their money by writing checks or using ATM or debit cards. Checks drawn on the banks will be processed normally. Loan customers should continue to make loan payments as usual.