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

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parent company of Reno-based , announced it is operating underd a cease and desist order to improve its capita position and cut its realestate losses. The bank operates as Silveradoo Bankin Roseville. “Nevada Security Bank face unprecedented challenges with the increasing levelpof non-performing loans, the steep declines in the underlying valuew of real estate collateral and the greater loan loss provisionss required,” said Hal Giomi, foundert and chairman of The Bank Holdings. He is also chiegf executive.
“Our priorities and objectives are well-defined as we purposelhy move forward toaddress issues, make prudent modifications, and work diligentlyy for the desired Giomi said. The bank’s executives entered the agreemen with Nevada banking authorities and the regulators at the end of andthe bank’s management had alreaduy started working to improve the bank’s capitap levels by cutting costs, reducingt the size of the balance sheet and seeking more The bank internally stopped making new construction and land developmenr loans in third-quarter 2007.
The regulatory ordere demands the bank’s management increase the company’s capital, reduce the concentration of commerciall real estate loans and changs internalmonitoring procedures. Nevada Security Bank has a concentrationm of construction and development loansin Reno, whic h was a booming real estate markert through much of this decade, but floundered starting in 2007. Bank Holdings was hammered in the fall by thefederalk government’s action to put Fannire Mae and Freddie Mac into conservatorship, whichy cost the company a $15 million loss of capitakl that had been invested in the stock of the two government-sponsoree secondary mortgage investment companies.
Bank Holdings startecd in 2001 with initial capitakof $14 million. It currently has $45 million in with four branches in Northern Nevadza and onein