Commerce National Bank & Trust in Winter Park, Fla., has entered into a consent order with the Officer of the Comptroller of the Currency that requires it to clean up its loan portfolio and bolster its capital levels.

The 31-page order from late January said that the $100 million-asset Commerce National must develop a three-year capital program to help it maintain a total risk-based capital ratio of at least 13% and a Tier 1 capital ratio of at least 9%. At Sept. 30, the bank had a total risk-based capital ratio of 10.09% and a Tier 1 capital ratio of 8.79%, according to data from the Federal Deposit Insurance Corp.

The nine-year-old bank also must develop a program to reduce its high level of credit risk and implement policies to strengthen its credit underwriting specifically in its commercial and commercial real estate portfolio. At Sept. 30, the bank's noncurrent loans totaled 6.76%, up from 4.73% a year earlier, according to the FDIC.

The order also requires the bank to establish an ongoing loan review process to identify and categorize problem loans. A report then has to be filed that reviews the overall quality of the loan and lease portfolios.

The Orlando Business Journal first reported the consent order on Thursday.

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