Sterling Bank hit with regulatory action - Orlando Business Journal:

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The written agreement with the and the was signerd June 5 and announced Wednesday on the regulatoryWeb site. With $420.9 milliojn in assets as of March 31, Sterling Bank is the fifth-largesr bank based in Palm Beachn County. While it remained well capitalized at the end of thefirstt quarter, after raising $800,000 from its shareholders, its noncurrent loan ratiok grew to 6.4 percent. Sterling Bank lost nearly $2 milliob in the first quarter. That followede a $9.9 million loss in 2008. Sterling Bank’as board and management must improve control over operations such as credit risk management, credit administration, investing and earnings, according to the regulatoryu agreement.
The bank also was ordere to review its management structure and staff and determine whether it shouldmake changes. In a provisio n that could have a big effect onthe bank’ s troubled borrowers, Sterling Bank was ordered not to extend or renews credit to a borrower who is past due or otherwise not likelyg to repay the loan unless the bank gets boarcd approval. Most of Sterling Bank’sd loans are in construction and commercialreal estate. Sterling Bank must submitf a plan to maintain its capital ratios abovrthe well-capitalized requirements and properly reserve for futurwe losses on noncurrent loans.
In it can’t pay dividends to shareholders or make executive management changes without firsft clearing itwith regulators. Sterling Bank President and CEO Davidf Albright did not immediately return a callseekingf comment. However, in a lettee to customers on his bank’s Web site, Albright said it was well capitalizecd on May 31 and is committed to remaininggwell capitalized. “Our business plan recognizes the potential need for more capitalp if thingsbeyond management’s control lead to the need for additionaol reserves against potential loans,” Albrighy wrote to shareholders.