Regulators have ordered Community 1st Bank Las Vegas in New Mexico to appoint a new chief executive and clean up its loan portfolio.
A May 5 consent order from the New Mexico Financial Institutions Division and the Federal Deposit Insurance Corp. that was made public in June requires the $146 million-asset Community 1st to appoint a CEO with experience managing a bank that's "comparable" in size. The order also says that the bank must hire a new chief lending officer and requires that its board increase its oversight of management and its activities.
It maintains the bank has been operating "with an excessive volume of classified assets, inadequate lending policies and procedures, an inadequate allowance for loan and lease losses, inadequate internal loan review system, concentration of credit to individual borrowers, inadequate management and Board supervision and oversight."
At March 31, 13.27% of the bank's outstanding loans were at least 90 days past due, up from 9.71% at the same time last year and 1.47% two years ago.
In a news release Monday, Community 1st President Keith Tucker said that the bank has made significant progress in meeting these demands and plans to abide to all the terms included in the consent order.
Community 1st has five branches in San Miguel, Mora and Guadalupe counties, according to FDIC data.