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Plaza Bank Assumes Deposits of 1st Commerce Bank

 

June 7 - 1st Commerce Bank, North Las Vegas, Nev., has been closed by the FDIC. The FDIC board of directors issued an order authorizing the FDIC to close, and become receiver of, 1st Commerce Bank, by exercising its self-appointment powers granted by Congress through the FDIC Improvement Act of 1991.

To protect depositors, the FDIC entered into a purchase and assumption agreement with Plaza Bank, Irvine, Calif., to assume all of the deposits of 1st Commerce Bank.

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: www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about the transaction should call the FDIC toll-free at 800-405-6318.  Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/1stcommerce.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.

 

 


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