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Question and Answer Guide

Silver State Bank, Henderson, NV

En Español

Is My Account Fully Insured? (closedbanks.fdic.gov/drrip/AFI/Search/)

Electronic Deposit Insurance Estimator (edie.fdic.gov/)

The following questions and answers represent the most commonly asked questions by customers of a failed institution. If the balance in your account(s) (this includes any accounts in which you have an ownership) is less than $100,000, no action is required on your part at this time. Your insured account(s) will be transferred to Nevada State Bank and will be available for business as usual during regular business hours.

DEPOSIT QUESTIONS

1. Over $100,000: What if I have more than $100,000 in my accounts at Silver State Bank?
2. Account Hold: I have been advised there is a hold on my account.  What does that mean?
3. Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at Silver State Bank are fully insured?
4. ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?
5. Automatic Payments/Online Billpay: Will my automatic payments through Billpay continue?
6. Brokered Deposits/Deposit Broker: I am a deposit broker or I have a deposit through a broker.  What do I need to do?
7. Checks not Honored: A merchant will not honor my check.  What can I do?
8. Claim Account(s): How do I claim my account(s)?
9. Customer Impact: How does this failure affect me?
10. Deposits Existing at Assuming Bank: I already have other deposit accounts with the new bank.  When combined with balances at this bank, my deposits exceed $100,000.  Are all funds insured?
11. Direct Deposits - Social Security: What will happen to my direct deposits?
12. Early Withdrawal Penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?
13. Final Statement How will I get my final account statement(s) from Silver State Bank?
14. Interest: Will I continue to earn interest at the same rate?
15. Interest Check/Cashier's Checks: Can I cash my interest check or cashier's check?
16. Internet Connection: Why doesn't my Internet connection to Silver State Bank work?
17. IRAs: What if I have an Individual Retirement Account (IRA)?  Will my savings still be insured?
18. Lose Any Money? Will I lose anything on my deposit account?
19. Outstanding Checks: What will happen to the checks which have not cleared my account?
20. Records/Account Histories: What if I need information regarding my account during the time Silver State Bank was in business?
21. Tax Reporting - 1098/1099s Who will send my 1098 and/or 1099 information after the end of the year?
22. Uninsured: Will I collect my uninsured deposits?
23. Wire Transfer: Can funds be wired to me?

LOAN QUESTIONS

24. Automatic Payments: Will my automatic transaction payment still occur on its assigned date?
25. Construction Loan Draws: Will construction draws continue?  Will my project be completed?
26. Construction Loan Voucher Control: Will my subcontractors be paid as before?
27. Escrows: Will you continue to pay my escrows?
28. Fees: Are there any changes to fees or charges due to this event?
29. Lender and Contact Names: Who is my lender and has my loan contact changed?
30. Loan Sales: Will my loan be sold?
31. Line of Credit Advances: Can I continue to perform advances on my personal line of credit?
32. Loan in Process: I have a loan currently in process.  How is my loan impacted?
33. Loan Sweeps: Will my loan sweep be discontinued?
34. Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?
35. Payments: How and where do I make my payments?  Can I still pay by phone or at the branch?
36. Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?
37. SBA Application in Process: What will happen to my SBA loan application in process?
38. What Happens Now: What will happen to my loan?

GENERAL QUESTIONS

39. All Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured or not, pass is some transactions but not in others?
40. FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?
41. Media: I represent a TV/Newspaper/Radio and would like some information.
42. New Bank Insured: Is the new bank insured by the FDIC?
43. Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
44. Shareholder: I am a shareholder in Silver State Bank.  What happens to my shares?
45. Unpaid Bill: I did some work for Silver State Bank and have not yet been paid.  What should I do?
46. What Happened? What happened, why did the bank fail?

DEPOSIT QUESTIONS

1.  What if I have more than $100,000 in my accounts at Silver State Bank?

If you have an account or group of accounts that exceeds $100,000, you may need to complete certain declarations or affidavits and provide documentation so that the FDIC can make an insurance determination on your account(s).

If you are an investor with a deposit broker, you may need to complete one of these forms only if your investment exceeds $100,000.  However, you must mail your form to your deposit broker for submission to the FDIC.

If your deposits DO NOT exceed $100,000, you DO NOT need to complete these documents or contact the FDIC.

An account hold may be placed on an account due to the need for additional documentation from a depositor.  For example, a Declaration for Trust form may be required to attest to the parties involved in a trust.  These forms can be mailed to you, or you can access them online at Deposit Claims & Asset Sales (www.fdic.gov/regulations/laws/forms/claims.html).

If you have a question regarding the completion of required affidavits or declarations, please call 1-800-523-8177 and indicate you have a form completion question.

If you have more than $100,000 in your account, or if the total of your related accounts exceeds $100,000, your accounts may require review by an FDIC Claim Agent. You should call the FDIC at 1-800-523-8177 to schedule an appointment.

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2.  I have been advised there is a hold on my account.  What does that mean?

It is possible a depositor’s account was held due to delinquent loans where the depositor is the borrower or guarantor.  Additionally, any account pledged as collateral for a loan will be held.  A letter will be sent informing you of these types of account holds, along with instructions on how to proceed.  If you have any questions regarding these types of account holds, please call the FDIC at the number provided in the letter.

Another reason an account hold may be placed is due to the need for additional documentation from a depositor.  For example, a Declaration for Trust form may be required to attest to the parties involved in the trust.  Please contact the FDIC at 1-800-523-8177 to schedule an appointment.

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3.  Is there a method to verify whether my account(s) at Silver State Bank are fully insured?

A tool, Is My Account Fully Insured? (closedbanks.fdic.gov/drrip/AFI/Search/), is available that allows failed bank customers the ability to verify whether their account is fully insured or if they need to contact the FDIC.  This service will be available for use no later than the first business day after the bank's failure.  Once you enter your account number, your insurance status for that account will appear.  If there is a hold on your account, it may be due to the need for the additional documentation referenced in question number 1.  If there is a hold, you will need to contact the FDIC at 1-800-523-8177 to schedule an appointment.

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4.  Can I continue to write checks or use my ATM/Debit card?

You will be able to continue using your personal checks at this time, and your ATM/Debit card will continue to work.  The ATM machine will be unavailable for a short period of time on Friday for processing; however, it will be operational shortly after that is accomplished and will be available as usual.  Debit card point-of-sale limits for the weekend will be $500.

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5.  Will my automatic payments through Billpay continue?

Any payments scheduled will continue as usual.  Any new payments can only be scheduled starting on Monday.

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6.  I am a deposit broker or I have a deposit through a broker.  What do I need to do?

Brokered deposits will be held by the FDIC, and those insured deposits will be paid off when the insurance determination is complete.  The FDIC offers an online reference guide to deposit brokers acting as agents for their investor clientele.  This site outlines the FDIC’s policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts in a failed FDIC-insured institution.  Please read the Deposit Broker Processing Guide completely before contacting the FDIC with questions.

Deposit Broker Processing Guide (www.fdic.gov/deposit/deposits/brokers/index.html)

Should you have any questions regarding the completion of required affidavits or declarations on behalf of your client, please call 1-800-523-8177 and indicate you have a form completion question.

If you are a customer who has a Silver State Bank deposit through a broker, you must contact your broker with any questions.  Once the FDIC receives a balanced investor file along with all the required documentation, from your broker, your insured funds will be wired to them on your behalf.

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7.  A merchant will not honor my check.  What can I do?

A copy of this document or the press release (www.fdic.gov/news/news/press/2008/pr08077.html) can be provided as it states insured deposits have been transferred, and it is business as usual.  Copies of this press release will be available at the bank.  Depositors or merchants can also call the FDIC at 1-800-523-8177 or your new bank at your former Silver State Bank branch location.

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8.  How do I claim my account(s)?

A deposit insurance payment of your account(s) up to the insured limit has already been transferred, and your account will be handled as usual.  Any withdrawal, renewal or additional deposits will “claim” your account(s).  Please be advised that if there is no activity in your account in the next 18 months, that money will be escheated to your state.  Unclaimed property can be located by visiting www.missingmoney.com or contacting your state’s treasurer’s office or office of unclaimed property.

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9.  How does this failure affect me?

The effect of the failure on the average depositor of Silver State Bank will be minimal, as the FDIC transferred the insured deposits and certain assets to Nevada State Bank.   If you held an account at a Nevada branch of Silver State Bank, you now have an account at Nevada State Bank.  If you held an account at an Arizona branch of Silver State Bank, you now have an account at National Bank of Arizona.

The former Silver State Bank locations will reopen as branches of Nevada State Bank in Nevada and as branches of National Bank of Arizona in Arizona.  Please note you will not be able to transact business at existing Nevada State Bank or National Bank of Arizona branches until you are notified.  Existing customers of Nevada State Bank or National Bank of Arizona will not be able to transact business at these former Silver State Bank branches until you are notified.

If the balance in your account(s) (this includes any accounts in which you have an ownership) is less than $100,000, no action is required on your part at this time.  Your entire account(s) will be transferred and will be available for business as usual during regular business hours at the former Silver State Branches.

If you have more than $100,000 in your account (or $250,000 in your IRA), or if the total of your related accounts exceeds $100,000, your accounts may require review by an FDIC Claim Agent.  All accounts that appear to be related are reviewed to determine ownership and insurance coverage.  Certain entitlements and different types of accounts can be insured in excess of the $100,000.  If you think you might have uninsured deposits, please see question number 1 for information regarding forms you may need to complete to expedite this process.

If you had a loan with the bank, continue to make your checks payable to Silver State and mail to the same address you have used in the past until you are instructed otherwise.

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10.  I already have other deposit accounts with the new bank.  When combined with balances at this bank, my deposits exceed $100,000.  Are all funds insured?

The transferred accounts will be separately insured for at least six months after the merger.  This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.

CDs from the assumed bank are separately insured until the earliest maturity date after the end of the six-month grace period.  CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.  If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

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11.  What will happen to my direct deposits?

Direct Deposits will continue as normal, including Social Security checks.  If you need to change anything in the future, please contact or visit your former Silver State Bank branch location to make those arrangements.

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12.  Will I incur an early withdrawal penalty if I close my CD before maturity?

No.  You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank.  Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.

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13.  How will I get my final account statement(s) from Silver State Bank?

You will receive your account statements at the same time you have received them in the past.

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14.  Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, September 5, 2008 will be paid at your same rate.  Nevada State Bank and National Bank of Arizona will be reviewing rates and will provide further information soon.

If you deposited funds through a broker, the interest will accrue and be paid through Friday, September 5, 2008.

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15.  Can I cash my interest check or cashier's check?

Interest checks and cashier's checks will continue to clear up to the insurance limit.  Outstanding cashier's checks and interest checks are eligible for deposit insurance coverage and will be added back to any other of your account balances with the same ownership capacities to determine your insurance coverage.  If a portion of an interest check or cashier’s check exceeds the insurance limits, a stop payment order may have been issued on that check.  If you believe that a check in your possession exceeds the deposit insurance limits, you can call the FDIC at 1-800-523-8177 to schedule an appointment to speak to an FDIC Claim Agent.

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16.  Why doesn't my Internet connection to Silver State Bank work?

Over the weekend, the website will be available in a read-only mode.  Online transactional service is expected to resume on Monday morning.  Silver State Bank had a number of avenues for customers to access funds, and each of those avenues will be available when final processing is completed.

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17.   What if I have an Individual Retirement Account (IRA)?  Will my savings still be insured?

Yes.  IRA funds are insured separately from other types of accounts up to $250,000.

If you close your IRA before maturity, you have 60 days to roll this over into another retirement vehicle.  You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution.  IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.

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18.  Will I lose anything on my deposit account?

Principal and interest on insured accounts, through Friday, September 5, 2008 are protected by the FDIC, to at least $100,000.  All transferred accounts are insured to at least $100,000.  Certain entitlements and different types of accounts can be insured in excess of the $100,000.

If you have more than $100,000 in your account (or $250,000 in your IRA), or if the total of your related accounts exceeds $100,000, your accounts may require review by an FDIC Claim Agent.  All accounts that appear to be related are reviewed to determine ownership and insurance coverage.  See question number 1 for information regarding forms you may need to complete to expedite this process.

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19.  What will happen to the checks which have not cleared my account?

Checks that were drawn on Silver State Bank that did not clear before the institution closed will be honored up to your available balance or the insured amount.

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20.  What if I need information regarding my account during the time Silver State Bank was in business?

Please contact a representative of your new bank at your former Silver State Bank branch location to obtain a copy of any records you may need or visit your branch.

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21.  Who will send my 1098 and/or 1099 information after the end of the year?

Nevada State Bank will be responsible for mailing your 1099 tax information.  Your 1098 reporting will be done by the FDIC or the servicer of your loan.  You will be notified of any changes in ownership or servicing of your loan.

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22.  Will I collect my uninsured deposits?

If it is determined that you have some uninsured funds, the FDIC will mail you a Receiver Certificate.  This certificate entitles you to share proportionately in any funds recovered through the sale of the assets of Silver State Bank.  You may eventually recover more of your uninsured funds as assets are liquidated.

When a financial institution is closed, and the Federal Deposit Insurance Corporation ("FDIC") is appointed as receiver, one of FDIC's responsibilities is to sell the institution's assets to pay the depositors and its creditors.  The money generated by the sale of these assets will flow through the Receivership, and periodic dividend payments will be made to proven claimants when excess cash is available.  For an explanation of the dividend process go to FDIC Dividends from Failed Banks (closedbanks.fdic.gov/dividends/index.asp).

Of course, you will receive immediate full payment for your insured amount by transfer to Nevada State Bank.

If you have a deposit through a broker, your insured funds will be wired to your broker on your behalf once the FDIC receives all required documentation from your broker.

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23.  Can funds be wired to me?

Please contact your former Silver State Bank branch location to obtain information regarding your wire request.

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LOAN QUESTIONS

24.  Will my automatic transaction payment still occur on its assigned date?

You should experience no disruption in this service.  We encourage you to check your bank account the day after your scheduled draft to verify the transaction.  If the transaction did not occur, please notify your loan officer and we will research your loan.

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25.  Will construction draws continue?  Will my project be completed?

Each loan is being reviewed independently, and you should direct your questions to your loan officer.  These will be determined on a case-by-case basis.

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26.  Will my subcontractors be paid as before?

Each loan is being reviewed independently and will be determined on a case-by-case basis.  You should direct your questions to your loan officer.

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27.  Will you continue to pay my escrows?

All services previously completed related to your loan will continue.  Should you receive notification that any portion of your taxes or insurance were not paid, please notify your loan officer immediately.

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28.  Are there any changes to fees or charges due to this event?

No.  The current fee structure will remain the same.

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29.  Who is my lender and has my loan contact changed?

Your loan is currently owned by the FDIC and is being serviced by all of the same personnel with whom you have worked in the past.  All prior contacts remain the same.

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30.  Will my loan be sold?

Your loan may be sold at a future undetermined date.  If that occurs, you will be notified in advance through written correspondence.  If you are concerned about whom your future lender or servicer will be, you have the right to independently refinance you loan with another lender.

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31.   Can I continue to perform advances on my personal line of credit?

All Home Equity Lines of Credit (HELOCs) have been suspended at this time.  You may contact Nevada State Bank at 1-702-399-LOAN (5626) to discuss establishing a borrowing relationship.

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32.  I have a loan currently in process.  How is my loan impacted?

Please contact your loan officer directly.

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33.  Will my loan sweep be discontinued?

This will be determined on a case-by-case basis.  Please contact your loan officer.

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34.  Will my overdraft line of credit continue to cover my overdrafts?

Yes.  These lines have been transferred to Nevada State Bank if a Nevada customer, or National Bank of Arizona if an Arizona customer.  Please contact your new bank if you have additional questions regarding your accounts.

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35.  How and where do I make my payments?  Can I still pay by phone or at the branch?

You should continue to make your payments exactly as you have in the past.  Make checks payable to Silver State Bank and utilize the same payment address information.

You may continue to make your payments at the branch or by phone via check or credit card.

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36.  If I refinance with another lender, will my pre-payment penalty be waived?

Those will be determined on a case-by-case basis.

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37.  What will happen to my SBA loan application in process?

The FDIC as Receiver for Silver State Bank will not be originating any new loans.

If your loan has been approved by the SBA, but is not yet funded, please contact Mike Cummins at 1-972-400-1882.  He will direct you to the proper SBA contact to help you locate another approved lender.

If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you, and you will need to apply with another SBA-approved lender.  Please contact Mike Cummins at 1-972-400-1882 to make arrangements to retrieve your application from the bank.

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38.  What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan.  If you are concerned about whom your future lender or servicer may be, you have the right to independently refinance your loan with another lender.

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GENERAL QUESTIONS

39.  Why do all deposits, insured or not, pass is some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution.  The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction.  The FDIC is only able to transfer all deposits if the uninsured amounts are covered by the premium.  The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.

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40.  How can I find out more about Federal Deposit Insurance rules?

You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE):

Deposit Insurance (www.fdic.gov/deposit/index.html)

Are my deposits insured? (www.fdic.gov/deposit/deposits/index.html)

EDIE (edie.fdic.gov/)

You may also order Your Insured Deposits or any other FDIC publication through the following:

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41.  I represent a TV/Newspaper/Radio and would like some information.

Please contact David Barr at 202-898-6992.  He may also be reached at: dbarr@fdic.gov.

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42.  Is the new bank insured by the FDIC?

Yes.  Your deposit at Nevada State Bank is insured by the FDIC, and each depositor is insured to at least $100,000, as established by law.

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43.  How can I claim the contents of my safe deposit box?

It is business as usual.  You may go to your branch and access your safe deposit box or make appointments by calling your former Silver State Bank branch location.

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44.  I am a shareholder in Silver State Bank.  What happens to my shares?

Shareholders have a claim against the receivership; however, they have the lowest priority of claim.  You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes.

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45.  I did some work for Silver State Bank and have not yet been paid.  What should I do?

Please send your bills to the following address:

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46.  What happened, why did the bank fail?

Silver State Bank, Henderson, Nevada was closed Friday, September 5, 2008, by the Nevada Financial Institutions Division.  Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver.  The FDIC will transfer insured deposits and certain assets of Silver State Bank, to Nevada State Bank, based in Las Vegas, Nevada.  Nevada State Bank entered into a separate agreement to sell the Arizona branches of Silver State to National Bank of Arizona.  See the Nevada Financial Institutions Division Press Release for further information.  According to regulatory policy, there is no advance notice given to the public.

The good news is that no one lost any insured deposit money as a result of the closure of Silver State Bank.  To protect depositors, the FDIC Board of Directors approved the assumption of Silver State Bank’s insured deposits by Nevada State Bank.

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SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.

For more information: www.fdic.gov/bank/individual/failed/silverstate.html

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