Capital levels at SouthBank in Palm Beach Gardens, Fla., have dropped below a minimum required by regulators.
The $23.1 million-asset company reported a $374,000 loss in the second quarter, compared to a $25,000 loss a year earlier. Its Tier 1 leverage ratio slipped to 7.7% at June 30 well below the 9% minimum demanded in a 2012 consent order issued by the Office of the Comptroller of the Currency. The bank's losses were largely tied to the sale of repossessed property, according to the South Florida Business Journal.
SouthBank's holding company, Commonwealth Savingshares in Huntsville, Ala., has been operating under a written agreement with the Federal Reserve Board since February.