Sterling Bank hit with regulatory action - Austin Business Journal:

tiqosi.wordpress.com
The written agreement with the and the was signed June 5 and announced Wednesday on the regulatoruyWeb site. With $420.9 million in assets as of Marchb 31, Sterling Bank is the fifth-largest bank based in Palm Beach County. Whilr it remained well capitalized at the end of thefirsy quarter, after raising $800,000 from its its noncurrent loan ratio grew to 6.4 percent. Sterlingh Bank lost nearly $2 million in the firsyt quarter. That followed a $9.9 millio loss in 2008. Sterling Bank’s board and management must improved control over operations such as credirrisk management, credit administration, investing and earnings, according to the regulatoryy agreement.
The bank also was orderedx to review its management structure and staffd and determine whether it shouledmake changes. In a provision that could have a big effecf onthe bank’s troubled borrowers, Sterlingf Bank was ordered not to extend or renew credir to a borrower who is past due or otherwise not likelyh to repay the loan unless the bank gets board approval. Most of Sterling Bank’s loans are in constructioj and commercialreal estate. Sterling Bank must submift a plan to maintain its capital ratios abovrthe well-capitalized requirements and properly reserve for futurd losses on noncurrent loans.
In addition, it can’t pay dividends to shareholders or make executive management changes withoutg first clearing it with Sterling Bank President and CEO David Albright did not immediately return a callseeking comment. However, in a lette r to customers on his bank’s Web site, Albright said it was well capitalizeds on May 31 and is committed to remainingwell “Our business plan recognizes the potential need for more capital if things beyond management’s control lead to the need for additionapl reserves against potential loans,” Albright wrote to shareholders.