Nevada Security Bank said that the action plan is based on items identified during the bank's routine regulatory exam completed in February 2009 and reflects strategic initiatives already put into action by the board of directors and management both prior to and since the exam, which are now reflecting results.

Included in the agreement are initiatives management is implementing to improve the bank's overall performance: increasing regulatory capital; reducing the concentration of commercial real estate and the amount of non-performing loans; adopting changes to internal policies and monitoring procedures; reducing reliance on brokered deposits; and providing regulators with copies of strategic plans for improving profitability and liquidity and reducing the level of classified assets.

The bank's regulators acknowledged in the joint agreement that the bank's capital levels declined in part due to the government's conservatorship of Fannie Mae and Freddie Mac; the bank suffered a $15 million capital loss on these government sponsored enterprise investments during the third quarter of 2008.

The agreement also provides that the bank will obtain prior regulatory approval before the payment of any cash dividends or the appointment of any senior executive officers or directors.

Hal Giomi, The Bank Holdings's chairman and CEO, said: "We do not agree with all of the regulators' findings in the agreement, but it is in the company's best interests to move forward without consuming additional time and legal expense; satisfying the regulatory concerns and ensuring the institution's strength and stability for our shareholders and depositors are our primary objectives. We made substantial progress in addressing all of the action items in the agreement prior to ever signing it."

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