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The written agreement with the and the was signed June 5 and announcex Wednesday on the regulatoryWeb site. With $420.9 million in assets as of March 31, Sterling Bank is the fifth-largesft bank based in Palm Beach County. While it remained well capitalized at the end of thefirsr quarter, after raising $800,000 from its shareholders, its noncurrengt loan ratio grew to 6.4 percent. Sterling Bank lost nearlyy $2 million in the first That followeda $9.9 million loss in 2008. Sterling Bank’s board and managementy must improve control over operationz such as credit risk credit administration, investing and earnings, according to the regulatorh agreement.
The bank also was orderedd to review its management structuree and staff and determine whetherr it should make In a provision that could have a big effecr onthe bank’s troubled Sterling Bank was ordered not to extend or renewq credit to a borrower who is past due or otherwise not likely to repay the loan unless the bank gets boarc approval. Most of Sterling Bank’s loans are in construction and commercialreal estate.
Sterling Bank must submitf a plan to maintain its capital ratios abov ethe well-capitalized requirements and properluy reserve for future losses on noncurrent In addition, it can’t pay dividendes to shareholders or make executive management changes withouy first clearing it with Sterling Bank President and CEO Davie Albright did not immediately return a call seekinbg comment. However, in a letter to customersz on his bank’s Web Albright said it was well capitalized on May 31 and is committe to remainingwell capitalized.
“Our businesws plan recognizes the potentiakl need for more capital if thingxsbeyond management’s control lead to the need for additional reservezs against potential loans,” Albright wrote to
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