FIs closed: SouthwestUSA Bank, Las Vegas, Nevada, USA
On Friday, 23 July, 2010, SouthwestUSA Bank, Las Vegas, Nevada was closed by the Nevada Financial Institutions Division, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Plaza Bank, Irvine, California, to assume all of the deposits of SouthwestUSA Bank.
The sole branch of SouthwestUSA Bank reopened on Monday as a branch of Plaza Bank.
As of March 31, 2010, SouthwestUSA Bank had approximately USD214.0 million in total assets and USD186.7 million in total deposits.
Plaza Bank did not pay the FDIC a premium for the deposits of SouthwestUSA Bank.
In addition to assuming all of the deposits of the failed bank, Plaza Bank agreed to purchase approximately USD137.3 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund will be USD74.1 million. SouthwestUSA Bank is the 102nd FDIC-insured institution to fail in the USA this year and the fourth in Nevada.
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