LAS VEGAS — Nevada credit unions were considering plans Monday to stoke up safety soundness communication with members at branches and on Web sites following the failure last Friday of the $3 billion Silver State Bank, sold under a FDIC-arranged purchase deal with Zions Bancorp of Utah.
The collapse of Silver State due to faulty mortgage and construction loans, maintained 13 branches here and in Phoenix along with loan production offices in several Western states, all of which were converted to facilities of Nevada State Bank of Las Vegas or the National Bank of Arizona, both owned by Zions of Salt Lake City.
"To those who live in Las Vegas, the failure of the bank was not exactly a surprise since its problems have been well known having been covered in the media for some time," said Carol McGoldrick, director of marketing at the $1 billion Silver State Schools CU, the state's largest.
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So far an existing safety and soundness message on its Web site has been serving to answer member questions "but we may decide to change it" should heightened concerns arise, said McGoldrick. She said the public also seems to understand the CU and bank differences despite the similarities in usage of the "Silver State" name.
The collapse of Silver State follows the failure little more than a month ago of First National Bank of Reno and its affiliated First National Bank of Arizona which were sold at auction by the FDIC to Mutual of Omaha Bank.
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