The State of Nevada Financial Institutions Division announced that it has approved the decision of the board of directors of Fifth Street Bank, a closely held financial institution, to voluntarily self-liquidate through a fully regulated and managed closure plan. The Bank is well capitalized and has the capacity to fully honor all of its obligations to depositors and creditors. This difficult decision was due to the unsettled nature of the economy and is not related to any regulatory issue. 

The Bank had reported that investment options for its funds had become limited. Fifth Street Bank’s original business plan did not foresee the current economic climate.  Rather than sacrifice its promise to provide higher yield depository products to its depositors and partners, the Bank worked with state and federal regulators to implement a safe and sound closure over the next several months.

Fifth Street Bank has personally notified customers by telephone and mail of their options related to long-term insured investments. Customers may select to withdraw funds early from term accounts without penalty, or have the terms of their original deposit fully honored by a local FDIC-insured institution that will be selected and approved by the Bank’s directors and state and federal regulators.

Fifth Street Bank’s website, http://www.fifthstreetbank.com, has more information about the closure, including a complete list of questions and answers to respond to the public’s concerns.  In addition, a link has been added for individual questions from depositors and creditors.

“It is unfortunate when any Nevada bank chooses to end operations, but we understand Fifth Street Bank’s business reasons for closure and are working closely with them to ensure a smooth transition for all individuals and entities involved,” said George Burns, Commissioner of the Financial Institutions Division. “This decision is entirely voluntary.  Fifth Street Bank is in good standing with our Division.”