Regulators expect Corus Bankshares Inc. of Chicago to submit plans this week for recapitalizing itself and its bank, but the $7.7 billion-asset condominium lender said it is unsure about those plans passing muster.
In a Securities and Exchange Commission filing Monday, Corus said that it had a Tuesday deadline for submitting its capital plan under a written agreement with the Federal Reserve Board. The plan must outline its current and future capital requirements, along with the source and timing of additional money needed to meet future capital needs.
The company has until Friday to submit a similar capital plan for its Corus Bank to the Office of the Comptroller of the Currency, because the bank was deemed undercapitalized at the end of the first quarter.
A consent order with the OCC requires the bank to have a leverage ratio of 9% and a total risk-based capital ratio of 12% by June 18. At the end of the first quarter, the bank's leverage ratio was 4.2%, and its total risk-based capital ratio was 7.3%.
Failure to comply with any of the deadlines could result in further regulatory action, including a forced merger or seizure of the bank, the filing said.
It also said no assurances could be provided that regulators would consider the capital plans acceptable.