Strategic Capital Bancorp Inc. in Champaign, Ill., has until June to come up with a plan to replenish capital, under its most recent regulatory order.

Its $598 million-asset Strategic Capital Bank was adequately capitalized at yearend, with a leverage ratio of 4.71% and a total risk-based capital ratio of 8.28%, according to data from the Federal Deposit Insurance Corp. Typically banks must have a leverage ratio of 5% and a total risk-based capital ratio of 10% to be considered well capitalized.

But Strategic Capital Bank, which has two previous cease-and-desist orders from other regulators, has been told to boost its ratios.

The Federal Reserve Bank of Chicago disclosed Tuesday that it has a written agreement with Strategic Capital Bancorp.

The agreement, dated April 16, gives the company 60 days to detail the steps it will take to bolster capital. It also cannot pay dividends or redeem debt without permission.

The FDIC and Illinois regulators issued orders against the bank in August and December. Those orders chastised the bank for engaging in rapid asset growth funded by an inordinate volume of brokered deposits, operating with an excessive concentration of risk in securities backed by nontraditional mortgages that lack full borrower documentation and having inadequate capital.

They also restricted the bank from expanding its assets without permission and renewing any brokered deposits, among other things.

The December order required the bank to increase its leverage ratio to 8% and total risk-based capital ratio to 12%.

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