LAS VEGAS -- First National Bank of Nevada, located in Reno, and First Heritage Bank, N.A., located in Newport Beach, Calif., which is owned by First National Bank Holding Co., of Scottsdale, Ariz., were closed Friday by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. was named the receiver of the banks' accounts, according to the FDIC.

The FDIC entered into purchase and assumption agreements with Mutual of Omaha Bank, located in Omaha, Neb., to take over all of the deposits and certain assets of the First National Bank of Nevada, Reno -- which was also operating as First National Bank of Arizona, which recently merged into it -- and First Heritage Bank.

The 28 offices of the two banks will reopen on Monday as branches of Mutual of Omaha Bank. All depositors, including those with deposits in excess of the FDIC’s insurance limits, will automatically become depositors of Mutual of Omaha Bank for the full amount of their deposits.

Depositors will continue to be insured with Mutual of Omaha Bank, so there is no need for customers to change their banking relationship to retain their deposit insurance, the FDIC stated in a press release.

Over the weekend, customers of the banks will be allowed to access their money by writing checks or using ATM or debit cards, it said.

Checks drawn on the banks will be processed normally, and loan customers should continue to make loan payments as usual, officials said.

Of the 10 institutions that have failed over the past two years, this is the second time in which another bank acquired all of the failing banks’ insured and uninsured deposits.

Mutual of Omaha Bank’s acquisition of all deposits was the “least costly” resolution for the Deposit Insurance Fund compared to all alternatives because the expected losses to uninsured depositors were fully covered by the premium paid for the banks’ franchises, according to the press release.

As of June 30, 2008, First National of Nevada had total assets of $3.4 billion and total deposits of $3 billion.

First Heritage Bank had total assets of $254 million and total deposits of $233 million.

Customers who would like more information on Friday's transactions should visit the FDIC's Web site for First National Bank of Nevada, or click here for First Heritage Bank, N.A.

They may also call the FDIC toll free at 866-674-8944 and 800-523-8089 from 8 a.m. - 8 p.m. about both institutions. Anyone who would like to call the Mutual of Omaha Bank should call 888-419-5574.

In addition to assuming all of the deposits of the banks, Mutual of Omaha Bank will purchase approximately $200 million of assets from the receiverships.

Mutual of Omaha Bank will pay the FDIC a premium of 4.41 percent to assume all the deposits, the release says. The FDIC will retain the remaining assets for later disposition.

First Heritage Bank, N.A., had three branches; its clientele was comprised primarily of corporations.

First National Bank of Nevada, with 25 branches, also operated as First National Bank of Arizona. It is not affiliated with National Bank of Arizona, Zions Bancorporation, or its affiliates, officials said.

The cost of the transactions to the Deposit Insurance Fund is estimated to be $862 million.

The failed banks had combined assets of $3.6 billion, and .03 percent of the $13.4 trillion in Assets were held by the 8,494 institutions insured by the FDIC.

First National Bank of Nevada is the first bank to be closed in Nevada since Frontier Savings Association, of Las Vegas, on Dec. 14, 1990.

The bank closed most recently in California was IndyMac Bank, F.S.B., of Pasadena, on July 11, 2008.

This year, a total of seven FDIC-insured banks have been closed.