Sterling Bank hit with regulatory action - Austin Business Journal:

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The written agreement with the and the was signe d June 5 and announced Wednesday on the regulatory Web With $420.9 million in assetds as of March 31, Sterling Bank is the fifth-largest bank baseds in Palm Beach County. While it remained well capitalizefd at the end of thefirst quarter, after raising $800,000 from its shareholders, its noncurrent loan ratio grew to 6.4 Sterling Bank lost nearly $2 million in the firsft quarter. That followed a $9.9 milliomn loss in 2008.
Sterling Bank’s board and management must improve controlo over operations such as credit risk credit administration, investing and earnings, according to the regulatory The bank also was ordered to revieaw its management structure and staff and determined whether it should make changes. In a provisiomn that could have a big effect onthe bank’s troubled borrowers, Sterlinbg Bank was ordered not to extend or renew credit to a borrower who is past due or otherwisw not likely to repay the loan unless the bank gets boarx approval.
Most of Sterling Bank’s loans are in constructiom and commercial real Sterling Bank must submit a plan to maintain its capitaol ratios abovethe well-capitalized requirementw and properly reserve for future lossesx on noncurrent loans. In it can’t pay dividends to shareholders or make executive managemenft changes without first clearing itwith regulators. Sterlingb Bank President and CEO David Albright did not immediately returnh a callseeking However, in a letter to customers on his bank’ Web site, Albright said it was well capitalizef on May 31 and is committedr to remaining well capitalized.
“Our business plan recognizesz the potential need for more capitalk if thingsbeyond management’s control lead to the need for additionall reserves against potential loans,” Albright wrote to shareholders.