Sterling Bank hit with regulatory action - Orlando Business Journal:

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The written agreement with the and the was signede June 5 and announced Wednesday on the regulatortyWeb site. With $420.9 million in assets as of March 31, Sterlinvg Bank is the fifth-largest bank based in Palm Beach County. While it remainedd well capitalized at the end of thefirs quarter, after raising $800,000 from its shareholders, its noncurrent loan ratipo grew to 6.4 percent. Sterling Bank lost nearly $2 million in the first quarter. That followed a $9.9 milliomn loss in 2008. Sterling Bank’s board and managementt must improve control over operations such as creditrisk management, credit administration, investing and according to the regulatory agreement.
The bank also was ordereds to review its management structure and staff and determine whethe it shouldmake changes. In a provision that coulcd have a big effecg onthe bank’s troubled Sterling Bank was ordered not to extend or renew credit to a borrower who is past due or otherwiswe not likely to repay the loan unleszs the bank gets board approval. Most of Sterling Bank’s loans are in constructionh and commercialreal estate.
Sterling Bank must submit a plan to maintain its capitao ratios abovethe well-capitalized requirements and properlt reserve for future losses on noncurrent In addition, it can’t pay dividends to shareholderws or make executive management changes without firsty clearing it with regulators. Sterling Bank Presidenrt and CEO David Albright did not immediately return a callseeking However, in a letter to customers on his bank’w Web site, Albright said it was well capitalizedd on May 31 and is committed to remaining well capitalized.
“Our business plan recognizes the potentiao need for more capital if thingsbeyonsd management’s control lead to the need for additionak reserves against potential loans,” Albright wrote to shareholders.