Bank Holdings under cease and desist order - South Florida Business Journal:

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parent company of Reno-based , announced it is operating under a cease and desist order to improve its capital positio n and cut its realestate losses. The bank operates as Silveradio Bankin Roseville. “Nevadza Security Bank faces unprecedented challenges with the increasing levepof non-performing loans, the steep declines in the underlyintg value of real estate collateral and the greater loan loss provisionds required,” said Hal Giomi, founder and chairman of The Bank He is also chied executive.
“Our priorities and objectives are well-defined as we purposelhy move forward toaddress issues, make prudenr modifications, and work diligently for the desiredc results,” Giomi said. The bank’s executiveds entered the agreement with Nevada banking authorities and the regulators at the end of andthe bank’s management had alreaduy started working to improve the bank’s capital levels by cutting costs, reducing the size of the balancer sheet and seeking more capital. The bank internally stopperd making new construction and land development loansin third-quarter 2007.
The regulatory order demands the bank’s managemenr increase the company’s capital, reduce the concentrationn of commercial real estate loans and change internalomonitoring procedures. Nevada Security Bank has a concentration of constructiojn and development loansin Reno, which was a boomingy real estate market through much of this but floundered starting in 2007. Bank Holdings was hammered in the fall by thefedera government’s action to put Fannie Mae and Freddie Mac into which cost the company a $15 million loss of capitao that had been invested in the stock of the two government-sponsoredx secondary mortgage investment companies.
Bank Holdings startede in 2001 with initial capitaof $14 million. It currently has $45 million in with four branches in Northern Nevad and onein Roseville.