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parent company of Reno-based , announced it is operatinbg under a cease and desis t order to improve its capital position and cut its realestat losses. The bank operates as Silverado Bankin Roseville. “Nevada Security Bank facea unprecedented challenges with the increasing leveplof non-performing loans, the steep declinea in the underlying value of real estated collateral and the greater loan loss provisions said Hal Giomi, founder and chairman of The Bank Holdings. He is also chief “Our priorities and objectives are well-defined as we purposelhy move forward toaddress issues, make prudenyt modifications, and work diligently for the desire results,” Giomi said.
The bank’e executives entered the agreement with Nevada bankintg authorities and the regulators at the end of andthe bank’s management had already started workint to improve the bank’zs capital levels by cutting costs, reducinb the size of the balance sheet and seeking more The bank internally stopped making new constructionm and land development loans in third-quarter 2007. The regulatory order demandz the bank’s management increase the company’s reduce the concentration of commercial real estate loans and change internalmonitorinvg procedures.
Nevada Security Bank has a concentration of constructionh and development loans in which was a booming real estated market through much of this but floundered startingin 2007. Bank Holdings was hammered in the fall by thefederalo government’s action to put Fannie Mae and Freddiew Mac into conservatorship, which cost the company a $15 million loss of capital that had been investex in the stock of the two government-sponsorefd secondary mortgage investment companies. Bank Holdings started in 2001 with initial capitalof $14 million.
It currentlyh has $45 million in capital, with four branchez in Northern Nevada and onein
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