The Federal Reserve Board and the Florida Office of Financial Regulation have directed Sun American Bancorp in Boca Raton to improve its credit quality and maintain appropriate capital levels.

Under the agreement, which the Fed disclosed Tuesday, the $655 million-asset Sun American must manage its concentrations of credit to be consistent with the Interagency Guidance on Commercial Real Estate Lending Sound Risk Management Practices.

The company has not filed its fourth-quarter results with the Securities and Exchange Commission, but a call report by its Sun American Bank shows it lost $50 million, largely because of a $42 million goodwill impairment charge. In the fourth quarter nonaccrual construction and development loans grew 16% from the third quarter, to $9.5 million.

Sun American Bancorp also agreed to review its loan program and not to issue new credit to borrowers "whose extension of credit has been classified 'doubtful' or 'substandard.' "

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