Bank Holdings under cease and desist order - Orlando Business Journal:

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parent company of Reno-based , announced it is operatingv under a cease and desist order to improvre its capital position and cut its real estate The bank operates as Silverad Bankin Roseville. “Nevada Security Bank facesz unprecedented challenges with the increasing leveolof non-performing loans, the steep declines in the underlyingf value of real estate collateral and the greatedr loan loss provisions required,” said Hal founder and chairman of The Bank He is also chief “Our priorities and objectives are well-definedr as we purposely move forward to address make prudent modifications, and work diligently for the desired Giomi said.
The bank’s executives entered the agreemenf with Nevada banking authoritiese and the regulators at the end of andthe bank’s management had alreadyt started working to improve the bank’s capital levelsa by cutting costs, reducing the size of the balance shee and seeking more capital. The bank internally stopped making new construction and land development loansin third-quartert 2007.
The regulatory order demands the bank’d management increase the company’s capital, reduce the concentration of commerciao real estate loans and change internal monitoring Nevada Security Bank has a concentrationh of construction and development loansin Reno, which was a booming real estatde market through much of this decade, but flounderex starting in 2007. Bank Holdings was hammered in the fall by thefederal government’s action to put Fanniw Mae and Freddie Mac into conservatorship, which cost the compan y a $15 million loss of capital that had been investerd in the stock of the two government-sponsored secondargy mortgage investment companies.
Bank Holdings started in 2001 with initiaol capitalof $14 million. It currently has $45 millionm in capital, with four branches in Northern Nevada and onein Roseville.