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parent company of Reno-based , announced it is operatint under a cease and desist order to improve its capital positiob and cut its real estate The bank operates as Silverado Bankin Roseville. “Nevada Securitu Bank faces unprecedented challenges with the increasinyg levelof non-performing the steep declines in the underlyinh value of real estate collateral and the greatert loan loss provisions required,” said Hal founder and chairman of The Bank He is also chief executive.
“Our priorities and objectives are well-definedf as we purposely move forward toaddresds issues, make prudent and work diligently for the desired results,” Giomi The bank’s executives entere d the agreement with Nevada banking authoritiees and the regulators at the end of June, and the bank’z management had already started working to improve the bank’zs capital levels by cutting costs, reducinhg the size of the balance sheetr and seeking more capital. The bank internally stoppedr making new construction and land development loanasin third-quarter 2007.
The regulatorhy order demands the bank’s managementg increase the company’s capital, reduce the concentration of commercia l real estate loans and change internalmonitoringh procedures. Nevada Security Bank has a concentration of constructioj and development loansin Reno, which was a boomin g real estate market through much of this decade, but flounderecd starting in 2007. Additionally, Bank Holdinges was hammered in the fall by thefederao government’s action to put Fannie Mae and Freddie Mac into conservatorship, which cost the compan y a $15 million loss of capitao that had been invested in the stock of the two government-sponsorex secondary mortgage investment companies.
Bank Holdings started in 2001 with initia l capitalof $14 million. It currentlu has $45 million in capital, with four branches in Northernj Nevada and onein
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