Introduction
On July 25, 2008, First National Bank of Nevada, located in Reno, NV, was closed by the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver. This action included the former First National Bank of Arizona, Scottsdale, AZ, which had previously merged with First National Bank of Nevada on June 30, 2008. It’s important for customers of both entities to understand the implications of this event. This guide provides essential information to help navigate the process following the bank’s closure.
Press Release Information
The FDIC issued a press release (PR-63-2008) at the time of the closure, offering initial details. For media inquiries related to the First National Bank of Nevada closure, you can reach out to David Barr at 202-898-6992 or Andrew Gray at 202-898-7192 or 202-494-1049. This press release is a valuable resource for understanding the official announcement and initial statements regarding the bank’s situation.
Transfer to Mutual of Omaha Bank (Now First-Citizens Bank)
All deposit accounts from First National Bank of Nevada, including those related to the former First National Bank of Arizona merger, were transferred to Mutual of Omaha Bank, based in Omaha, Nebraska. This transfer ensured that all deposit accounts remained accessible to customers without interruption. For a period of six months following the closure, these transferred deposits were separately insured from any existing accounts held at Mutual of Omaha Bank. Checks drawn on First National Bank of Nevada were honored if sufficient funds were available.
If you had questions specifically about your transferred account at the time, FDIC representatives were available at (888) 206-4662 to address deposit insurance concerns. For general inquiries about FDIC deposit insurance, the FDIC offers an Electronic Deposit Insurance Estimator (EDIE) online.
EDIE – FDIC’s Electronic Deposit Insurance Estimator
Customers were able to withdraw funds from transferred accounts without early withdrawal penalties, provided the deposits were not collateral for loans, until a new deposit agreement was established with Mutual of Omaha Bank. More information about Mutual of Omaha Bank was available on their website.
It’s important to note that Mutual of Omaha Bank subsequently merged with First-Citizens Bank & Trust Company on January 1, 2020. First-Citizens Bank & Trust Company (www.firstcitizens.com) is now the relevant institution for customers who were originally affected by the First National Bank of Nevada closure and account transfer.
Banking Services Continuity
Following the closure of First National Bank of Nevada, banking services such as ATMs, safe deposit boxes, night deposit boxes, and wire services remained operational. Checks continued to be processed as usual against available balances. Mutual of Omaha Bank communicated directly with customers regarding any changes to account terms after the transfer. If merchants initially refused checks, Mutual of Omaha Bank provided a contact number, 888-419-5574, to resolve any issues and confirm check validity.
Interest rates on accounts were determined by Mutual of Omaha Bank after July 25, 2008, and customers received notification regarding these changes. Automatic direct deposits and withdrawals were intended to transfer seamlessly to Mutual of Omaha Bank. However, customers were advised to contact Mutual of Omaha Bank to confirm and ensure uninterrupted service. All deposit account histories and records were also transferred to the assuming institution.
Loan Account Information
For customers with loans from First National Bank of Nevada, including those potentially related to the First National Bank of Arizona portfolio after the merger, it was crucial to continue making payments as scheduled. Loan terms remained unchanged according to the original loan contracts. Payments should have continued to be made to First National Bank of Nevada at the same address until further notice. This ensured loan obligations were met during the transition period.
Filing Claims Against the Failed Bank
If you had outstanding bills for services provided to First National Bank of Nevada prior to its closure, you may have needed to file a claim against the failed institution. The FDIC typically sends notices to known service providers detailing the claim filing process shortly after a bank failure. It is important to note that strict time limits apply for filing claims, as specified in any received notice.
If you provided services to First National Bank of Nevada and did not receive a notice, you should contact the FDIC Receiver at:
Federal Deposit Insurance Corporation
Receiver: First National Bank of Nevada
Attention: Claims Department, DRR-1601 Bryan Street
Dallas, Texas 75201
Or call toll-free (888) 206-4662 for information on claim procedures.
Priority of Claims
Federal law dictates the order in which allowed claims are paid following a financial institution failure. The priority is as follows:
- Depositors
- General Unsecured Creditors
- Subordinated Debt
- Stockholders
This order ensures that depositors are prioritized in the repayment process, followed by other creditors and stakeholders.
Dividend Information
For information regarding dividend history on First National Bank of Nevada, you can refer to the FDIC’s resource:
Dividend History on First National Bank of Nevada
General dividend information related to failed financial institutions is also available:
Dividend Information on Failed Financial Institutions
These resources provide transparency on potential dividend payouts related to the closure.
Information for Brokered Deposits
The FDIC offers guidance for deposit brokers who act as agents for investors. This guide outlines the necessary FDIC policies and procedures for brokers filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC-insured institution like First National Bank of Nevada. All brokered deposits were also transferred to Mutual of Omaha Bank.
Deposit Broker Processing Guide
This information is crucial for deposit brokers to understand the specific processes related to the bank failure.
