The Office of Thrift Supervision has found Imperial Savings and Loan Association "critically undercapitalized" and ordered the Martinsville, Va., thrift to sell itself.
A prompt corrective order the OTS issued last week gives the $9 million-asset Imperial until July 25 to strike a deal to sell itself or substantially all its assets and liabilities to another bank or financial holding company.
The OTS also ordered Imperial not to issue any securities or enter into any merger agreement without written notice to the agency.
Imperial must maintain a total risk-based capital ratio of 8%, a Tier 1 risk-based capital ratio of 4%, and a leverage ratio of 4%. As of March 31 its total risk-based capital ratio was 4.76%, its Tier 1 risk-based capital ratio was 3.52%, and its leverage ratio was 2.16%, according to Federal Deposit Insurance Corp. data.
Imperial submitted a capital restoration plan to the OTS in March. The thrift lost $79,000 in the first quarter and has not turned a profit since the first quarter of 2006.
