The Office of the Comptroller of the Currency has entered into an agreement with American National Bank in Oakland Park, Fla., after finding "unsafe or unsound banking practices relating to credit risk."
The order, issued in early January and released on Friday, requires the $213.9 million-asset bank to develop and implement a plan to reduce the high level of credit risk, which should include procedures for strengthening collections and reducing the level of classified assets. The bank needs to review the adequacy of its allowance for loan and lease losses.
At Sept. 30, the bank's noncurrent loans totaled 7.8%, up from 3.97% a year earlier, according to data from the Federal Deposit Insurance Corp. Its Tier 1 risk-based capital ratio totaled 18.26% and total risk-based capital ratio was 19.42% at Sept. 30, according to the FDIC.
American National also must develop policies and procedures to comply with the Bank Secrecy Act and implement a program to monitor suspicious cash and wire transfers.
The South Florida Business Journal first reported the agreement.