PAB Bankshares Inc. has announced that it received a prompt corrective action directive from the Federal Reserve due to the "significantly undercapitalized" status of its Park Avenue Bank.
Under the Dec. 13 order, the Valdosta, Ga., company said Thursday that it has been given 90 days to raise capital, find a buyer or "take other necessary measures" to make the bank "adequately capitalized."
That would mean raising the bank's total risk-based capital ratio to 8%, from 5.92% at Sept. 30.
The $1.1 billion-asset company withdrew plans in August to raise $80 million by selling common stock "due to changing market conditions."
