Anadarko Bank and Trust Co. in Oklahoma must improve its lending procedures and board oversight under an agreement it has reached with the Federal Reserve Board and the Oklahoma State Banking Department.
Regulators told the $77 million-asset unit of Falcon Bancorp Inc. to hire a chief lending officer and to add an outside director with significant experience in banking, business, or lending.
The agreement, signed Aug. 13 and released late Thursday, says Anadarko must adopt a written plan within 60 days to maintain sufficient capital; improve earnings and the overall condition of the bank; and increase board oversight, including specific steps for directors to take to enhance credit risk management and the loan review process.
Within 90 days Anadarko must adopt acceptable loan policies and procedures and train its employees to follow them. The procedures must include the maintenance of an accurate watch list and guidelines for periodic collateral evaluations.
Anadarko lost more than $2 million in the fourth quarter, according to Federal Deposit Insurance Corp. data.
Its net chargeoff ratio was above 15% of total loans, compared with an average of 0.32% at community banks of similar size.
In the first quarter Anadarko earned $251,000, and its chargeoff ratio improved to 1.11%.
The 106-year-old bank has four branches, all in Caddo County.
