Henderson-based Silver State Bancorp files in bankruptcy court

Wed, Jan 7, 2009 (4:13 p.m.)

Silver State Bancorp of Henderson, the parent company of the failed Silver State Bank, has filed for protection from creditors in U.S. Bankruptcy Court in Las Vegas.

The bank filed for a Chapter 7 liquidation.

The Tuesday filing indicates there likely will be no funds available to pay the firm’s unsecured creditors, which are owed some $70 million.

The only substantial asset listed by Silver State is a $24.3 million income tax refund claimed for operating losses. But Silver State’s filing said the Federal Deposit Insurance Corp. may object to Silver State and its creditors receiving that money.

Silver State Bank was closed Sept. 5 by the Nevada Financial Institutions Division, and the FDIC was named receiver. Nevada State Bank assumed the insured deposits of Silver State Bank and took over its branches.

As of June 30, Silver State had loans and other assets of $2 billion and deposits of $1.7 billion.

Silver State Bancorp’s bankruptcy filing said it recorded a loss of $223.6 million in November and losses of $3.4 million in 2007 and $1.6 million in 2006.

Its largest unsecured creditor is LaSalle Bank, owed $30.9 million.

The failure of Silver State Bank left some depositors unable to recover all of their money, because their funds were in accounts that potentially exceeded the FDIC insurance limits.

Customers seeking information on the status of their deposits should visit the FDIC’s Web site at http://www.fdic.gov.