John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... Advantage Bank in Loveland, has agreed to a cease and desist order by the Federal Deposit Insurance Corp. The FDIC determined that it has “reason to believe” the bank “has engaged in unsafe and unsound banking practices.”
Advantage Bank entered into the cease and desist agreement “without admitting or denying any unsafe or unsound banking practices,” according to the order.
The bank - headed by Tom Chinnock, CEO; Jeff Kincaid, president; and Mike Bond, executive vice president – said the FDIC action arose during a “normal review” process by the FDIC.
“Bank examiners have recognized how the downturn in the economy has affected nearly every bank in the region,” the bank noted on its Web page. It goes on to say that its “primary bank regulators have recommended review and revision of some of our practices pertaining to our loan portfolio. To progress in improving in this area, we have entered into a Consent Agreement with our regulators and have already made significant strides in addressing their recommendations.”
For more details on the bank’s response, visit this link.
The FDIC said the bank was operating with a board of directors and management that had inadequate policies and practices for its prudent operation; it was operating with inadequate capital and an inadequate allowance for loans and lease losses for the volume, kind and quality of loans and leases held; it was operating with inadequate liquidity in light of its assets and liability mix; it was operating with an excessive level of adversely classified loans or assets and or delinquent loans and/or non-accrual loans; it was engaging inadequate lending and collection practices.
And finally, the FDIC said Loveland Bank was “operating with inadequate earnings.”
For a copy of the Cease and Desist order, which details the steps the bank needs to take and the time frame, go to this link.
Despite the agreement, the executive of the bank remain bullish.
“With signs of recovery on the horizon, we are able to look forward to a better tomorrow,” the bank said. “Advantage Bank continues to be a stable, locally-owned financial institution proud to serve Northern Colorado. We have taken this this necessary step to meet the needs of a promising future as we move forward.”
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
