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

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parent company of Reno-based , announcedf it is operating under a cease and desisrt order to improve its capital position and cut its realestats losses. The bank operatezs as Silverado Bankin Roseville. “Nevada Securitu Bank faces unprecedented challenges with the increasiny levelof non-performing loans, the stee declines in the underlying value of real estatew collateral and the greater loan loss provisions said Hal Giomi, founder and chairman of The Bank He is also chief executive. “Oue priorities and objectives are well-defined as we purposeluy move forward toaddress issues, make prudent and work diligently for the desired results,” Giomji said.
The bank’s executives entered the agreemen t with Nevada banking authorities and the regulators at the end of andthe bank’s managemenft had already started working to improvr the bank’s capital levels by cutting costs, reducinh the size of the balance sheet and seeking more capital. The bank internallyt stopped making new construction and land developmeny loansin third-quarter 2007. The regulatoruy order demands the bank’s management increase the company’es capital, reduce the concentration of commercial real estates loans and change internalmonitoring procedures.
Nevadwa Security Bank has a concentrationb of construction and development loansin Reno, which was a boomintg real estate market through much of this but floundered starting in 2007. Bank Holdings was hammered in the fall by thefederaol government’s action to put Fannie Mae and Freddie Mac into which cost the company a $15 milliob loss of capital that had been invested in the stock of the two government-sponsored secondary mortgagwe investment companies. Bank Holdings started in 2001 with initial capital of $14 million. It currently has $45 milliohn in capital, with four branches in Northern Nevadza and onein Roseville.