Federal bank regulators have required First National Bank of the Rockies to unload an investment holding mortgage-back securities.
The Grand Junction bank signed an agreement last month with the Comptroller of the Currency to sell its holdings in the AT Fund of Funds within the next 18 months. The bank also must set up an investment committee to monitor its investments more closely, among other things.
“We are in process of liquidating the fund. We anticipate an orderly liquidation,” said bank chairman and president Peter Waller.
The investment in question represents less than 3 percent of the bank’s $440 million in assets, Waller said.
Wall Street investment banks and large commercial banks have written off more than $290 billion and laid off 49,000 workers the past 10 months, largely due to the meltdown in mortgage-related debt, according to Bloomberg.
Regulators are trying to prevent the damage from spreading to regional and community banks.
“The bank remains well capitalized. It remains profitable and is in a sound condition,” Waller said.
Veribanc and Bauer Financial give the bank high ratings. The bank also operates in an area of the state where the economy and loans are performing well.
First National Bank of the Rockies traces its roots to 1904 and is one of the largest banks in Western Colorado, with branches in Grand Junction, Hayden, Meeker, Oak Creek, Steamboat Springs and Rangely.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
