The Federal Reserve has ordered Albina Community Bancorp in Portland, Ore., to serve as a source of strength to its struggling community development bank.
In an order released Thursday, the Fed also forbade the $185.6 million-asset company to take on additional debt, pay dividends or redeem stock.
The company's Albina Community Bank has operated under a consent order from the Oregon Division of Finance and Corporate Securities and the Federal Deposit Insurance Corp. since early March. It calls for the bank to boost its leverage ratio to 10% and its total risk-based capital ratio to 12%.
As of March 31, the bank's leverage ratio was 4.1%, and its total risk-based capital ratio, 6.4%.
In March, Albina said it was seeking a capital infusion from the Treasury Department's Community Development Capital Initiative, a part of the Troubled Asset Relief Program earmarked this year for community development financial institutions.
The company's capital has been diminished during the past year by high levels of nonperforming assets.
At March 31, Albina reported nonperforming assets of $17.6 million, or 9.47% of total assets. This dollar amount was down 4.3% from a year earlier.