GREELEY, Colo.—New Frontier Bank said Friday it is talking with investors about improving its liquidity and addressing the concerns of federal regulators, who issued a cease-and-desist order last month.
The bank said in a written statement it is in discussions with Colorado Financial Holdings, LLC, of Boulder about $30 million in new capital.
Colorado Financial Holdings has already filed with the Federal Deposit Insurance Corp. to become a bank holding company by acquiring all the voting shares of New Frontier Bancorp, parent of New Frontier Bank, according to FDIC documents.
The FDIC told the bank on Dec. 2 to end practices the FDIC described as unsound.
Bank officials signed a consent agreement without admitting or denying the allegations.
The FDIC claimed the bank was operating without enough capital protection for the kind of assets it held, operated without adequate liquidity, and relied heavily on short-term, potentially volatile deposits as a source for funding longer-term investments.
The FDIC order outlined a series of steps the bank needs to take, including requiring regular oversight of operations and finding a new chief executive officer and new senior lending officer.
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FDIC cease-and-desist order:
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