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News :: Globalization
feds seize 2 more banks
27 Jul 2008
duhhhhh-yas world
CARSON CITY, Nev. — The 28 branches of 1st National Bank of Nevada and
First Heritage Bank, operating in Nevada, Arizona and California, were
closed Friday by federal regulators.

The banks, owned by Scottsdale, Ariz.-based First National Bank
Holding Co., were scheduled to reopen on Monday as Mutual of Omaha
Bank branches, the Federal Deposit Insurance Corp. said.


The FDIC said the takeover of the failed banks was the least costly
resolution and all depositors _ including those with funds in excess
of FDIC insurance limits _ will switch to Mutual of Omaha with "the
full amount of their deposits.

"

The FDIC also said accountholders can access their funds during the
weekend by writing checks or using ATM or debit cards.



As of June 30, the closed banks had total assets of $3.6 billion.
That's down from $4.1 billion six months earlier. Most of the assets
are in 1st National while First Heritage accounts for $254 million.



Calls to 1st National were referred by a receptionist to Joe Martony,
an executive vice president in Scottsdale, Ariz. Martony didn't return
repeated calls to his office.



In Nevada, 1st National has 10 branches and employs about 350 people.
Five of its branches are in Las Vegas, three are in the Reno-Sparks
area, one is in Carson City and one is in Laughlin. Notices of the
closure were being posted late Friday.



Fifteen 1st National branches are in Arizona, while Newport
Beach-based First Heritage has three branches in Southern California.



Bill Uffelman of the Nevada Bankers Association said Friday the FDIC
action "is a reflection of the times for the banks. It's a poor
economy.

"

Uffelman cautioned against the sort of consumer concern that prompted
many customers of IndyMac Bank branches to wait for hours in line to
withdraw funds across Southern California last week after that bank
was seized by federal regulators. All FDIC-insured bank deposits are
guaranteed by the FDIC up to $100,000, he noted.



Gov. Jim Gibbons said the bank takeover will be closely monitored in
Nevada "to ensure there's minimal disruption to business and that
employees' jobs are protected as much as possible.

"

Arizona Gov. Janet Napolitano spokeswoman Shilo Mitchell said in a
statement that the FDIC's takeover of 1st National is not indicative
of the overall banking climate in Arizona.



"It's very important that Arizonans know that their deposits are
secure," said Felecia Rotellini, superintendent of Arizona Department
of Financial Institutions. "They are well-managed and the 1st National
Bank of Arizona issues should not cause any panic in Arizona.

"

Story at:

http://www. blacklistednews. com/news-790-0-13-13--. html

AP: No angry lines of customers after bank takeover

By AMANDA LEE MYERS,
Associated Press Writer
Sun Jul 27, 7:03 AM ET

PHOENIX - Customers of two banks closed by federal regulators were
assured that every penny of their money was protected, preventing
lines of angry accountholders from forming Saturday.



The calm response was a stark contrast to the hundreds of angry
customers who waited for hours earlier this month in Southern
California to demand their money after IndyMac Bank's assets were
seized.



The 28 branches of the 1st National Bank of Nevada and First Heritage
Bank N.A. — owned by Scottsdale, Ariz.-based First National Bank
Holding Co. — were closed Friday by the FDIC. First National Bank of
Nevada also operates as First National Bank of Arizona.



But Mutual of Omaha Bank bought all the two banks' deposits, even
those over the amount protected by FDIC insurance limits. IndyMac
customers had to take a loss on whatever amount they had in the bank
over the insurance limits.



One 1st National Bank of Arizona in downtown Phoenix didn't even have
a note outside to tell customers about the trouble Saturday. But there
were no customers outside to tell.



"I feel like the Maytag repairman — there's just not much to do on the
customer side of things," Federal Deposit Insurance Corp. spokesman
David Barr said. "There's going to be no impact on the depositors
whatsoever, except basically a name change," Barr said.



Insurance limits are typically $100,000, but some accounts, such as
joint accounts, can have more money protected, Barr said.



On Monday, Mutual of Omaha will open the banks as its own branches,
Barr said. During the weekend, accountholders can access their funds
by writing checks or using ATM or debit cards.



Jeff Schmid, chairman and CEO of Mutual of Omaha Bank, said the
acquisition of the new accounts aligns with the company's growth
strategy to get aggressive with banking.



"We're very optimistic about these markets," said Schmid, who was in
Scottsdale on Saturday to speak with his new employees. "This could be
our finest hour.

"

Mutual of Omaha Bank has $800 million in assets and operates 14 retail
branches in Nebraska and Colorado. It's a subsidiary of Mutual of
Omaha, a 99-year-old insurance and financial services company with
more than $19 billion in total assets.



The Office of the Comptroller of the Currency said in a news release
that 1st National was undercapitalized and had experienced substantial
dissipation of assets and earnings "due to unsafe and unsound
practices.

"

Those practices "also weakened the bank's condition and seriously
prejudiced the interests of the bank's depositors and the deposit
insurance fund.

"

Another news release said First Heritage was critically
undercapitalized and was likely to incur losses that would deplete all
or nearly all of its capital.



As of June 30, the closed banks had total assets of $3.6 billion.
That's down from $4.1 billion six months earlier. Most of the assets
are in 1st National, while First Heritage N.A. accounts for $254
million.



The FDIC said the takeover of the failed banks was the least costly resolution.



Calls to 1st National executive vice president Joe Martony were not
returned Saturday. No one could be reached at the First Heritage N.A.



1st National has 10 branches in Nevada and 15 branches in Arizona.
First Heritage N.A. has three branches in Southern California.

This work is in the public domain
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