San Joaquin Bancorp in Bakersfield, Calif., and its bank subsidiary must improve liquidity, board oversight, credit risk management, and loan policies and reviews under an agreement with regulators.

The order from the Federal Reserve Board and the California Department of Financial Institutions also gives the $936 million-asset company 10 days to charge off all outstanding loans classified as "loss" in a recent exam.

The company and its subsidiary also must alert regulators within 30 days of a quarter ending if capital levels at the bank or company fall below the thresholds to be considered well capitalized. At Dec. 31, the company's Tier 1 leverage ratio was 7.68%, its Tier 1 capital to risk-based assets was 8.27%, and its total risk-based capital ratio was 10.25%.

The order was disclosed last week.

In the fourth quarter, the company made $1.6 million, 36% less than a year earlier. It provisioned $3.4 million during the fourth quarter, 15 times the amount a year earlier. Nonperformers jumped almost ninefold to $44.5 million at yearend.

San Joaquin has identified $43.5 million of impaired construction and land development loans, whose repayment is uncertain, in Kern County, Calif. All told, the company had $67 million of impaired loans on its books at yearend.

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