Treasury IG Report: Material Loss Review of First National Bank of Nevada and First Heritage Bank, National Association

Treasury OIG-09-033, Safety and Soundness: Material Loss Review of First National Bank of Nevada and First Heritage Bank, National Association, February 27, 2009

“The primary cause of the failure of FNB Nevada was the significant losses within its commercial real estate loan portfolio as well as the losses from the residential mortgage division operations of the previously independent FNB Arizona. These losses resulted from inadequate management controls over credit underwriting and administrative practices, and inadequate risk management. The control deficiencies were exacerbated by unfavorable economic conditions. The primary cause of the failure of First Heritage Bank was FNB Nevadas inability to repay, at the time OCC closed the banks, a $74.4 million loan from First Heritage Bank. The resulting loss depleted all of First Heritage Banks capital.”

Treasury IG Report: Material Loss Review of First National Bank of Nevada and First Heritage Bank, National Association

Thank you!