Savannah Bancorp Inc. in Georgia said that one of its bank has entered into a consent order with regulators and now must work to maintain capital levels and reduce problem assets.
Savannah disclosed in a regulatory filing late Tuesday that the $240 million-asset Bryan Bank & Trust in Richmond Hill, Ga., entered into the agreement with the Federal Deposit Insurance Corp. and the Georgia Department of Banking and Finance last week. The order prevents the bank from paying dividends or bonuses and requires it to evaluate its staffing needs. Bryan Bank must also notify regulators if it plans to grow its assets by at least 10% annually.
The order also requires the bank to improve its liquidity, reduce assets of $750,000 or greater listed as doubtful or substandard, review the adequacy of its allowance for loan losses and perform a risk-segmentation analysis.
Bryan Bank must have a Tier 1 capital ratio of at least 8% and a total risk-based capital of at least 10%. At Dec. 31, the bank had a Tier 1 capital ratio of 8.01% and a total risk-based capital ratio of 12.09%.
The $1.1 billion-asset Savannah Bancorp's other bank, Savannah Bank, entered into a written agreement with the Office of the Comptroller of the Currency in October. That bank agreed to take steps to improve its asset quality, credit risk exposure, capital planning and liquidity and risk management.