Federal Trust Corp. in Sanford, Fla., has been given more time by the Office of Thrift Supervision to raise capital or sell itself.
The OTS had ordered Federal Trust to do so by July 15, but the $673 million-asset company said Wednesday that it now has until Sept. 30 to raise $30 million to $35 million of capital.
If that effort is unsuccessful, Federal Trust has until Nov. 15 to find a buyer.
The company, which continues to operate under a cease-and-desist order the OTS issued May 12, announced in the spring that it would conduct a rights offering of common stock by midyear.
Last month it said the offering would be extended to the public if it did not raise enough capital from current investors.
Federal Trust has yet to report second-quarter results. In the first quarter it lost $2.2 million, and its nonperforming asset ratio was 8.6% of total assets, according to a Securities and Exchange Commission filing. Its total risk-weighted capital ratio was 9.77% — enough to be considered adequately capitalized but below the 10% required to be considered well capitalized.
