Heritage Bank of Nevada buys out Carson River Community Bank
Carson River Community Bank, located on Highway 395 next to Home Depot and Target, was declared a failed institution Friday by Nevada state banking regulators and the Federal Depositors Insurance Corporation (FDIC). As a result, the FDIC immediately approved the sale of Carson River Community Bank to Heritage Bank of Nevada which has branches throughout the Carson City and Reno area.
Carson River Community Bank customers are now customers of Heritage Bank of Nevada. The FDIC says all accounts of $250,000 or less are insured and that there is no reason to worry about their funds. The funds are protected and safe.
Carson River Community Bank was the object of a recent order by state banking regulators to acquire greater assets to cover their troubled commercial loans. Carson River Community Bank was one of many local banks that got wrapped up in the commercial real estate boom prior to the beginning of the recession. When the recession hit, Carson River Community Bank was caught with a large portfolio of non-performing commercial loans that prompted an order for them to stop making any further commercial loans and that the current CEO/Manager of the bank be replaced. He was. In contrast, Heritage Bank of Nevada officials claim their bank is strong and sound because they refused to participate in the recent real estate market bubble that burst and sent the country into a financial tail-spin.
Other local community banks that have gone under due to failed commercial loan investments include Irwin Union Bank, Colonial Bank and 1st National Bank of Nevada. Many banking analysts predict there will be another wave of small community bank failures in the year ahead as the recession continues to stress their loan portfolios.
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