Friday, January 30, 2009

Fun times in Greeley!

Federal regulators have ordered New Frontier Bank to “cease and desist” unsound banking operations — and possibly violations of the law — that have led to the bank operating at too great of a risk.However, the bank already has found an investment group to help improve the bank’s liquidity and address regulator concerns, bank officials said today.
New Frontier has been under FDIC scrutiny since October, shortly after third-quarter financial filings showed the bank’s "real estate owned," or property that came back to the bank through foreclosure, and past due loans were more than 100 percent of its capital. Typically, banks that exceed 50 percent of their capital are considered “troubled.”
New Frontier announced in a press release today that it is in “advanced discussions” with a group of Boulder County investors to raise $30 million in new capital for the bank. That group, Colorado Financial Holdings, LLC, of Boulder, has already filed with the FDIC to become a bank holding company through the acquisition of 100 percent of the voting shares of New Frontier Bancorp, parent of New Frontier Bank, according to FDIC documents.
The cease-and-desist order, which was effective Dec. 2, but not reported publicly until today, states that the bank was involved in “unsafe or unsound banking practices and violations of law and regulations.” The order requires the bank to provide plans to deal with several problems, including requiring regular oversight of operations and the removal of the positions of president Larry Seastrom and chief lending officer Greg Bell.
New Frontier and the FDIC agreed to the cease-and-desist under an agreement that states bank officials will not admit or deny the charges.One of New Frontier’s biggest problems was the amount of loans past due, resulting in foreclosed assets sitting on their books. As of Sept. 30, 2008, banking reports, the most recent available, the bank reported it had $180 million in past-due loans and other real estate owned, compared to about $70 million the year before.New Frontier most recently took a hit on confidence when Johnson Dairy announced it was filing for Chapter 11 bankruptcy. The dairy, which has loans through New Frontier Bank, notes that it had debts between $50 and $100 million.The bank also owns a large golf course on the Western Slope that’s been sitting on the books for some time.Check back for more updates today at For complete coverage, see Saturday’s Tribune.


Blogger corporatebully said...

RBC Bank President Gordon Nixon - Salary $11.73 Million


I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.

There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

Phone or e-mail:
RBC President, Gordon Nixon, Toronto (416)974-6415
RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail
RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail
RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail
Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail

"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"

4:01 PM  

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