The Office of the Comptroller of the Currency has classified Metropolitan National Bank in Little Rock a "troubled institution" and ordered it to reduce problem assets and improve its capital ratios.
In an order issued May 22 and released Monday, the OCC said Metropolitan, a unit of the $1.8 billion-asset Rogers Bancshares Inc., has been operating in an "unsafe and unsound" manner "relating to some aspect of credit risk management, capital adequacy, and concentration risk management."
Its noncurrent loan ratio more than doubled from a year earlier, to 2.91% of total loans as of March 31, according to Federal Deposit Insurance Corp. data.
Metropolitan was ordered to achieve and maintain a Tier 1 capital ratio of at least 8% by June 30, along with a total risk-based capital ratio of at least 12% by Sept. 30. Its total risk-based capital ratio as of March 31 was 9.82%.
The regulator also said Monday that the $243 million-asset Legacy National Bank in Springdale, Ark., is operating under an enforcement agreement. The April 24 agreement requires Legacy to develop better loan portfolio management, develop a system to identify problem loans, review loan-loss allowances, and maintain proper capital levels.
For the first quarter, Legacy reported a net chargeoff rate of 5.04%. It reported no chargeoffs for the first quarter of last year.
