oryzacody.wordpress.com
parent company of Reno-based , announceds it is operating under a cease and desist orde to improve its capital position and cut its realestates losses. The bank operates as Silverado Bankin “Nevada Security Bank faceds unprecedented challenges with the increasing levelk of non-performing loans, the steep declines in the underlying value of real estatw collateral and the greater loan loss provisions said Hal Giomi, founder and chairman of The Bank Holdings. He is also chiecf executive. “Our priorities and objectives are well-defined as we purposelyh move forward to address makeprudent modifications, and work diligently for the desiredc results,” Giomi said.
The bank’s executives enteredx the agreement with Nevada banking authoritieas and the regulators at the end of andthe bank’s management had already started workin to improve the bank’s capitaol levels by cutting costs, reducing the size of the balancr sheet and seeking more capital. The bank internally stopped making new construction and land developmentf loansin third-quarter 2007.
The regulatory order demands the bank’s management increase the company’s capital, reducew the concentration of commercial real estatee loans and change internal monitoring Nevada Security Bank has a concentration of constructioh and development loansin Reno, which was a boomintg real estate market through much of this but floundered starting in 2007. Additionally, Bank Holdings was hammeree in the fall by thefederal government’s action to put Fannire Mae and Freddie Mac into which cost the company a $15 milliob loss of capital that had been investesd in the stock of the two government-sponsorec secondary mortgage investment Bank Holdings started in 2001 with initiapl capital of $14 million.
It currently has $45 millionj in capital, with four branches in Northern Nevadas and onein Roseville.
No comments:
Post a Comment