FDIC Friday ~ June 7, 2013
Posted: Fri Jun 07, 2013 4:08 pmPlaza Bank, Irvine, California, Assumes All of the Deposits of 1st Commerce Bank, North Las Vegas, Nevada
As of March 31, 2013, 1st Commerce Bank had approximately $20.2 million in total assets and $19.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, Plaza Bank agreed to purchase essentially all of the failed bank's assets.
The FDIC and Plaza Bank entered into a loss-share transaction on $12.2 million of 1st Commerce Bank's assets. Plaza Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/fai ... index.html.
The FDIC estimates that cost to the Deposit Insurance Fund will be $9.4 million. Compared to other alternatives, Plaza Bank's acquisition was the least costly resolution for the FDIC's DIF. 1st Commerce Bank is the 15th FDIC-insured institution to fail in the nation this year, and the first in Nevada. The last FDIC-insured institution closed in the state was Nevada Commerce Bank, Las Vegas, on April 8, 2011.
As of March 31, 2013, 1st Commerce Bank had approximately $20.2 million in total assets and $19.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, Plaza Bank agreed to purchase essentially all of the failed bank's assets.
The FDIC and Plaza Bank entered into a loss-share transaction on $12.2 million of 1st Commerce Bank's assets. Plaza Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/fai ... index.html.
The FDIC estimates that cost to the Deposit Insurance Fund will be $9.4 million. Compared to other alternatives, Plaza Bank's acquisition was the least costly resolution for the FDIC's DIF. 1st Commerce Bank is the 15th FDIC-insured institution to fail in the nation this year, and the first in Nevada. The last FDIC-insured institution closed in the state was Nevada Commerce Bank, Las Vegas, on April 8, 2011.