Former Native American Bank Chief Executive Officer William “Bill” Snider was the Chief Financial Officer and Vice Chairman of the Board of Directors of the recently failed United Western Bank based in Denver, CO. The $2 billion United Western Bank was closed by bank regulators last month.
Mr. Snider, who served as a board member of Native American Bank from 2001-2009 and also served as Native American Bank’s president and CEO during 2005, led a management group that purchased the former Matrix Capital Bank based in Denver, CO in 2005.
Mr. Snider and his management group then renamed the bank United Western Bank. That management group bet big on private label mortgage backed securities and lost big. A portfolio of mortgage backed securities once worth $750 million plunged in value by approximately $500 million. United Western also experienced significant losses in its new emphasis upon loans in the construction, development and commercial real estate sectors.
Guy Gibson, chairman of the board for United Bank’s bank holding company, United Western Bancorp expressed shock and dismay at the closing of the bank by the bank regulators. “We don’t know why they took this precipitous action. We were shocked” stated Mr. Gibson.
United Western Bank is the largest bank failure in the U.S. over the last seven months. As of September 30, 2010, United Western reported total assets of $2.05 billion and total deposits of $1.65 billion. Upon closing of United Western Bank, bank regulators arranged a sale of the bank and its eight locations to First-Citizens Bank & Trust Co. of Raleigh, N.C.
United Western’s financial deterioration caused the bank regulators to put the bank under a “Memorandum of Understanding” in December, 2009. Due to continued bleeding of red ink, the bank was placed under a “Cease and Desist Order” in June, 2010, a stricter version of the Memorandum of Understanding that further tightens up regulatory scrutiny.
By that time Mr. Snider had retired as Chief Financial Officer of United Western. His retirement became effective as of April 15, 2010, however, he continued in his role as a Director of the bank.
In another connection to Native American Bank, Chuck Caswell, the former Executive Vice President and CFO of Native American Bank from 2008-2010 was hired in January, 2010 as Executive Vice President and CFO of United Western. However, he departed that position in May, 2010 after just 5 months on the job.
As part of the deal to sell United Western to First Citizens, the Federal Deposit Insurance Corporation agreed to assume $553 million of United Western’s most troubled assets, according to FDIC spokesman Greg Hernandez. The FDIC estimates its deposit insurance fund will lose approximately $313 million attributable to the failure of United Western Bank.