Posted on Friday, February 4, 2011
The Federal Deposit Insurance Corp. hit one bank in each of South Florida's three counties with regulatory consent orders. It said Friday that Professional Bank, a Coral Gables start-up, TransCapital Bank in Hallandale Beach and First Bank of the Palm Beaches in West Palm Beach agreed to comply with terms of the orders without admitting or denying wrongdoing.
Consent orders vary slightly according to the individual circumstances of each bank and carry a deadline of anywhere from 60 to 120 days.
First Bank, the only one that has released its earnings for the most recent quarter, was ordered to maintain its total risk-based capital at or above 12 percent and keep its Tier One leverage ratio at or above 8 percent. Its total risk-based capital was at 12.03 percent and its leverage ratio was at 9.4 percent, as of Dec. 31.
Joseph B. "Jay" Shearouse III, who became the bank's chief executive in December, said the order is based on findings of a July examination.
"It's actually a good agreement — all common sense stuff," he said.
Professional Bank said in a statement that it agrees with the order's recommendations to increase earnings with specific requirements to review all aspects of financial management at the bank.
Executives at TransCapital Bank did not immediately return phone calls.
The order called for the bank's board to "increase its participation" in the bank's affairs and addressed concerns over issues including its management and capital.
TransCapital agreed to keep a Tier 1 capital ratio of at least 8 percent and a total risk-based capital ratio of at least 12 percent. As of Sept. 30, they were at 9.4 percent and 14.3 percent, respectively.
Wayne Tompkins, DAILY BUSINESS REVIEW