Mutual Community Savings Bank Inc. of Durham, N.C., said it expects to receive to cease-and-desist order from state and federal regulators that would require it to improve its management and board oversight, boost capital, and develop a plan to increase earnings.
The $94 million-asset state-chartered thrift disclosed in a Securities and Exchange Commission filing last month that the Federal Deposit Insurance Corp. and the North Carolina Office of the Commissioner of Banks had issued the proposed order after a joint examination. Mutual Community said that it has requested revisions to the proposed order but that "there can be no assurance" it will be revised.
William G. Smith, Mutual Community's president and chief executive officer, did not return phone calls requesting comment.
Mutual Community lost $846,000 last year and $383,000 in 2005, according to FDIC data.
