Regulators have entered into a consent order with First Bank of Miami that requires the Coral Gables, Fla., company to maintain certain capital levels and ensure compliance with the Bank Secrecy Act.
The order with the Federal Deposit Insurance Corp. and the Florida Office of Financial Regulation requires the $248 million-asset bank to increase its allowance for loan and lease losses and submit a plan to reduce its remaining assets classified as doubtful and substandard.
First Bank has to perform a risk segmentation analysis and develop a plan for monitoring concentrations of credit. The order also requires the bank to revise its Bank Secrecy Act and anti-money laundering policies to include methods of determining risk ratings of customers and comprehensive monitoring of high-risk accounts.
The bank must maintain a leverage ratio of at least 8% and a total risk-based capital ratio of at least 12%. At March 31, its core capital (leverage) ratio was 8.58% and its total risk-based capital ratio was 14.46%, according to the FDIC.
The bank recorded a $325,000 net operating loss, compared with a profit of $72,000 a year earlier, while its noncurrent loans totaled 4.08% at March 31, according to the FDIC. The order was issued in May but released on Friday. The South Florida Business Journal first reported the consent order on Friday.