The struggling Park View Federal Savings Bank of Solon, Ohio, must boost its capital levels by yearend, and it has a new chief executive officer on board to help.
PVF Capital Corp. said in a Securities and Exchange Commission filing Thursday that the Office of Thrift Supervision told its $921 million-asset thrift unit to increase its core capital ratio to 8% and its total risk-based capital ratio to 12%, levels higher than the typical minimums required to be well capitalized.
The filing did not give other details, such as whether the thrift unit had received a formal enforcement action.
At the end of the second quarter Park View was well capitalized by the usual regulatory standards, according to data from the Federal Deposit Insurance Corp. It had a core capital ratio of 6.54% and a total risk-based capital ratio of 10.03%.
But its loan trouble has been getting worse. Even though it charged off 5.03% of its loans during the quarter, noncurrent loans made up 8.38% of its total loans.
PVF also said that Robert J. King Jr. became president and CEO of the company and the thrift unit Thursday, after the OTS agreed to the appointment. But his employment agreement is still under OTS review.
King most recently was a senior managing director of FSI Group Inc., a private-equity firm that focuses on investing in banks. Before that he had worked at Fifth Third Bank for nearly three decades in various roles; he was chairman immediately before his retirement in 2004.
King succeeded Marty E. Adams, who had been the interim CEO of the company and the bank since March.
PVF has said that it intends to appoint Adams as a director at the company, pending OTS approval. Adams had been president and chief operating officer at Huntington Bancshares Inc. from July 2007 to December 2007, after it bought Sky Financial Group Inc. He was president and CEO of Sky before that.