Silver State Bank
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1996 |
| Defunct | September 5, 2008 |
| Headquarters | Nevada , United States |
Area served | Western United States (including Las Vegas and Phoenix metropolitan areas) |
| Products | Commercial banking, Lending services |
Silver State Bank was a commercial banking institution headquartered in Nevada, United States, which ceased operations in 2008. It maintained 17 branch locations within the metropolitan regions of Las Vegas and Phoenix, while extending its lending services throughout the western part of the country. The bank's assets were ultimately acquired by Zions Bancorporation, a financial holding company managing assets totaling $2 billion.
History
Established in 1996 as a community-focused bank serving the Las Vegas vicinity, Silver State Bank grew to cover a broader regional market. On September 5, 2006, its parent company, Silver State Bancorp, completed the acquisition of Choice Bank located in the Phoenix/Scottsdale area of Arizona. By 2008, the two entities had fully integrated their operations.
Failure
Silver State Bank was shut down by the Nevada Financial Institutions Division on September 5, 2008, with control transferred to the Federal Deposit Insurance Corporation (FDIC) as receiver. FDIC-insured deposit accounts based in Nevada were moved to Nevada State Bank, while those in Arizona were reassigned to National Bank of Arizona; both institutions are subsidiaries of Zions Bancorporation. This closure marked the eleventh insured commercial bank failure in 2008, a significant increase from three such failures in 2007. The FDIC Deposit Insurance Fund faced estimated losses between $450 million and $550 million resulting from this failure. Additionally, nearly $20 million held in uninsured deposits across approximately 500 accounts suffered losses due to depositor confusion regarding FDIC coverage limits.
The bank's downfall was primarily attributable to an overconcentration in high-risk real estate lending, especially loans secured by undeveloped land intended for residential development that became unsustainable following the collapse of the United States housing bubble.
Andrew McCain
According to reports from the Wall Street Journal, Andrew McCain—son of Republican presidential nominee John McCain—served on Silver State Bank’s board for a period of five months during 2008. He resigned on July 26 citing "personal reasons," shortly before endorsing the bank’s second-quarter financial audit statements.