Boston Thrift Set To Ink OTS Pact
Boston Five Bancorp expects the Office of Thrift Supervision to ask its saving bank subsidiary to sign an agreement detailing the steps being taken to improve its risk-based capital ratio.
Announcing a loss of $5.8 million for the quarter ended July 31, Boston Five said it meets current capital requirements but must improve its position slightly to meet standards that will take effect by December 1992.
The bank reported having tangible capital equal to 4.6% of assets, more than the 4% that will be required. But its risk-weighted capital of 7.6% is shy of the 8% 1992 requirement.
A bank can improve its risk-based capital ratio in a number of ways, including selling assets and changing the mix of assets. A spokesman for the well-regarded $2 billion-asset thrift said it could not give details on what would be in the agreement with the OTS, beyond saying that the agreement concluded a regulatory exam.