The Federal Deposit Insurance Corp. gave the Woodbury, Ga., company 60 days from July 12 to raise and maintain capital to at least an 8% Tier 1 capital ratio and a 10% total risk-based capital ratio. The $27.8 million-asset bank had a Tier 1 capital ratio of 11.5% at June 30. Its total risk-based capital ratio was 12.8% at midyear. Woodbury's total nonperforming assets made up 5% of all assets, compared to 4.6% a year earlier.
The FDIC ordered the company to tighten its lending standards and clean up its classified assets. Woodbury must also provide further disclosure on its plan for every classified asset with a balance of $100,000 or more. The 28-page order touched on nearly every aspect of the company from operations, management, information technology and call report filings.
The FDIC also ordered Woodbury to retain qualified management, including a chief financial officer and senior lending officer, within 60 days. The company was given a month to hire a bank consultant to assess management needs.
Be the first to comment on this post using the section below.