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parent company of Reno-based , announced it is operatinf under a cease and desist order to improve its capital position and cut its realestatw losses. The bank operatees as Silverado Bankin Roseville. “Nevada Security Bank faces unprecedented challenges with the increasing levepof non-performing loans, the steep declines in the underlyintg value of real estate collateralo and the greater loan loss provisions required,” said Hal founder and chairman of The Bank Holdings.
He is also chief “Our priorities and objectives are well-defined as we purposelyh move forward toaddress issues, make prudent modifications, and work diligentlu for the desired results,” Giomi The bank’s executives enterexd the agreement with Nevada banking authoritiews and the regulators at the end of and the bank’s managemenyt had already started working to improv e the bank’s capital levels by cutting costs, reducing the size of the balancw sheet and seeking more capital. The bank internall y stopped making new construction and land development loansin third-quarterf 2007.
The regulatory order demands the bank’sz management increase the company’es capital, reduce the concentrationh of commercial real estate loans and change internalmonitorinfg procedures. Nevada Security Bank has a concentratiojn of construction and development loans in which was a booming real estate market through much of this but floundered startingin 2007. Bank Holdings was hammeres in the fall by thefederal government’s actio n to put Fannie Mae and Freddid Mac into conservatorship, which cost the company a $15 million loss of capitap that had been invested in the stock of the two government-sponsorexd secondary mortgage investment companies.
Bank Holdings startede in 2001 with initial capitalof $14 million. It currently has $45 million in with four branches in Northern Nevada and onein
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