OptimumBank in Plantation, Fla., has been hit with an enforcement action due to concerns about its asset quality, capital position, compliance with anti-money-laundering regulations and other issues.
The Federal Deposit Insurance Corp. placed the $122 million-asset bank under a consent order on Nov. 10, according to the agency's monthly bulletin issued Friday. The Florida Office of Financial Regulation also participated in the issuance of the order. OptimumBank is the operating bank of OptimumBank Holdings in Fort Lauderdale, Fla.
The FDIC issued the consent order because of "weaknesses in asset quality, capital adequacy, earnings, management effectiveness, liquidity, sensitivity to market risk, and the bank's compliance with the Bank Secrecy Act."
Among various requirements, OptimumBank's board must increase its participation in the bank's management and must hold meetings at least monthly. Additionally, management must improve its capital ratios; address nonperforming loans that had been flagged during a February examination, either by recording charge-offs, or collecting on the loans or eliminating the loans from its books; and revise its lending policies.
Additionally, the FDIC on Nov. 21 terminated an earlier consent order, issued in April 2010, that had required OptimumBank to address several related problems.
OptimumBank could not be reached for comment on Tuesday.