State takes possession of Elko bank

CARSON CITY (AP) " Nevada regulators announced Friday they have taken possession of Elko-based Great Basin Bank of Nevada and appointed a federal receiver.

State Financial Institutions Commissioner George Burns said the bank's insured and uninsured deposits will be assumed by Nevada State Bank. The Federal Deposit Insurance Corp. is the receiver of the insolvent bank.

Great Basin currently has total assets of about $238 million and total deposits of about $220 million. That's down from about $264 million in assets and $241 million in deposits in late December.

"Due to inadequate capital and mounting loan losses, it was necessary to close Great Basin Bank of Nevada," Burns said, adding that the bank's five branches, all in northern Nevada, will reopen on Monday as branches of Nevada State Bank.

Great Basin has two branches in Elko, one in Spring Creek, one in Fallon and one in Winnemucca.

"Our first order of business is to welcome Great Basin clients to Nevada State Bank and to assure them that their deposits are safe, sound and readily accessible," stated Dallas Haun, president and CEO of Nevada State Bank.

Nevada State Bank also acquired the insured deposits of Silver State Bank in southern Nevada last fall. Prior to the latest acquisition, Nevada State Bank operated 54 branches statewide and listed assets of more than $4 billion.

Nevada State Bank, a subsidiary of Salt Lake City-based Zions Bancorporation, is the fourth largest commercial bank in Nevada.