For many of the issues, the bank, which reportedly has $1.2 billion in assets, has agreed in a document signed March 8 and released by the Fed today that it would submit improvement plans within the next 60 days. These plans will include, according to the document, "an acceptable written plan to strengthen the bank's management of commercial real estate concentrations, including steps to reduce or mitigate the risk of concentrations in light of current market conditions."The bank also agreed to submit a plan "designed to improve the bank's position through repayment, amortization, liquidation, additional collateral, or other means on each loan, relationship or other asset in excess of $500,000, including other real estate owned that is past due as to principal or interest more than 90 days as of the date of (the) agreement, is on the bank's problem loan list, or was adversely classified in the Report of Examination."
According to the agreement, the Report of Examination referenced was filed by the Fed and the state on June 22, 2009. The bank "shall not, directly or indirectly, extend, renew or restructure any credit to or for the benefit of any borrower, including any related interest of the borrower, whose loans or other extensions of credit are criticized in the report," according to the agreement. Both Fed and state officials refused to discuss the agreement or the report. "We would not make that report public," a federal spokeswoman tells GlobeSt.com. Bank officials did not return calls for comment.
The bank also agreed to submit plans to maintain sufficient capital and improve the bank's liquidity position and funds management practices, and to reduce, and not accept any new, brokered deposits. Also, the bank is not allowed to declare or pay any dividends without the state and Fed giving permission.
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