Signature Bank Enters FDIC Consent Order
by January 10, 2011 12:00 am 182 views
Fayetteville-chartered Signature Bank of Arkansas has entered into an agreement to comply with a consent order from the Federal Deposit Insurance Corp., its federal regulator. The order is dated Nov. 4.
The consent order states Signature Bank “has consented, without admitting or denying any charges of unsafe or unsound banking practices…”
Gary Head, chairman and CEO of the bank’s holding company, White River Bancshares Inc., said the bank agreed to fully comply with the order and already had been in the process of meeting many of its standards, which included boosting its capital.
The order requires Signature to maintain a tier 1 risk-based capital ratio of 9 percent. Head said the bank’s ratio as of Nov. 30 was 9.21 percent, partly due to the sale of two of its Benton County branches to Harrell Bancshares Inc. of Camden. That sale closed on Nov. 8.
The bank also shrank its board in early November.
“This agreement identifies areas in which we need to improve. Unfortunately, banks being under agreements like this are not uncommon today,” Head said in a prepared news release. “Our community has suffered economically and we reflect that result; our board and management team are focused on managing credit risks, reducing operating expenses, improving net interest margin and many other things to ensure the future success of our bank.”
Head said the bank’s operating expenses had been cut by $2.6 million in the last year.
According to its call report, Signature Bank had a $5.18 million loss through the first nine months of 2010.