WASHINGTON — The U.S. Federal Reserve has ordered the Orlando, Fla.-based Old Southern Bank to either find a buyer or increase its equity within the next month.
The Fed on Thursday released an order dated Jan. 13 that requires the bank, whose parent holding company is Old Southern Bancorp. Inc., to take such steps.
The Fed in its order said the bank "is critically undercapitalized."
Old Southern Bank Chairman and Chief Executive John G. Squires said the bank has been working since last fall to address the Fed's concerns. "We already have commitments in hand for more than $30 million in new capital," Squires said, noting that the commitments are contingent upon the bank's reaching its target of raising $45 million in total new capital.
"We are confident we will reach that target well within the timeframe set forth by the regulatory agreement," Squires said.