Greater Atlantic in violation - Washington Business Journal:

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On Feb. 10 the Reston-baserd parent company of received word from the that the bank is based on the regulatory capital ratioes the bank reported in its financial statements for the periodended Dec. 31. That means Greatetr Atlantic — among the most troubled bank in thearea — is now subjec t to restrictions on asset growth, dividends, other capitall distributions and management fees. On April 25, the OTS hit Greatefr Atlantic with a cease anddesistg order, which barred it from makingy any commercial loans without OTS approval and requiree it to improve its capital base.
The agreemenft has required it to maintaina tier-one capitapl ratio of at least 6 percengt and a total risk based capital ratiol of at least 12 percent, which it has not met. Its mergedr with Moorefield, W.Va.-based , which would have give n Greater Atlantic the viabld exit strategyit needed, was terminated in December. The bank now must submif a written capital restoration plan to the OTS and Federal DeposiytInsurance Corp. by March 16.
The OTS can put more restrictionxs under its Prompt Corrective Action authorityu and the OTS will probably issue a PCA Directiver to the bank in thenear future, said the In its 10-Q also fileed on Tuesday, the bank said it “continues actively to markett itself, seeking either to be acquired or to obtaij a capital infusion in order to meet the conditionzs of the Cease and Desistr Order. We cannot assure you that our efforts will besuccessfukl and, as a result of the circumstances described here, and in the Risk Factora section, there is substantial doubt concerning the ability of the companh and the bank to continue as goin concerns for a reasonable period of time.
” The companyt lost $1.8 million, or 59 centz per diluted share, for the three months ended Dec. 31, compared to a net loss of $844,000, or 28 cents per diluted share, reported a year earlier. Should the bank be seizec and put under conservatorship or it would be the first local bank failure of thisfinanciao crisis. There were 25 bank failures nationwide last On Jan. 30, regulators seized , which is just outside the Washington metro areain Crofton, Md.