Regulators disclosed a consent order against Bank of North Las Vegas on Friday, but the chief executive said the problems are mostly resolved and the bank will survive.
"We're going to make it. Right now, (the strategy is) just survival until the economy comes back," said CEO James York. "Today, we're largely in compliance with all the conditions of the order "
Bank of North Las Vegas became the 11th Nevada bank to be identified in a public enforcement action since the start of 2009. Of those, six have been seized.
The Federal Deposit Insurance Corp. and Nevada Financial Institutions issued Bank of North Las Vegas with the consent order on June 14. The regulators ordered the board to increase its participation in bank affairs. They also directed Bank of North Las Vegas to lower nonperforming assets through collections, charge-offs and improvements of asset quality.
Nonperforming assets, including nonperforming loans and foreclosed real estate, represent 23 percent of total assets.
The bank's capital or net worth is 10.66 percent of assets and is considered well capitalized. York said the board may seek to raise capital late this year.
However, regulators expressed concern about the level of commercial real estate loans and land loans. Bank of North Las Vegas lost $1.2 million during the first six months of 2010. It has $92 million in assets.
Contact reporter John G. Edwards at jedwards @reviewjournal.com or 702-383-0420.