Published Wednesday, May 27, 2009 | 12:03 p.m.
Updated Wednesday, May 27, 2009 | 4:35 p.m.
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Community Bancorp and its subsidiary Community Bank of Nevada entered a written agreement with the state's Financial Institutions Division and the Federal Reserve Bank of San Francisco.
In the agreement the bank has 60 days to submit plans to strengthen the board of directors oversight of the bank's management and operations, strengthen the bank's credit risk management practices and improve the bank's loan review process.
The bank is not allowed to extend credit to any borrowers who owe the bank money or had a loan charged off by the bank as a loss. Community Bancorp has not yet filed its annual report for 2008.
"We are well along in the process of developing the information required within the agreement and expect to be completed within the 60 days," Community Bancorp Chairman and CEO Ed Jamison said in a statement. "Although we face difficult challenges, we are attempting to address them in a prudent and effective manner. We believe that our strong ties to the community, our loyal customer base and our outstanding employees will assist us in addressing these challenges and continue to provide high quality service to our Nevada and Arizona markets.
"The regulatory agreement is the result of ongoing discussions between the (Federal Reserve Board) and the company to address the negative impact that the current market conditions are having on the company and the subsidiary bank and how best to resolve them. We believe the measures agreed upon are an important step in addressing these issues. I want to emphasize to our customers that deposits are insured by the (Federal Deposit Insurance Corp) to the maximum amount permitted by law."