Rare Removal Causes Shock At One Bank & Trust

by George Waldon  on Monday, Nov. 5, 2012 12:00 am  

A banking insider said the push to downgrade One Bank’s capital status could be linked to an assessment that the bank’s “risk profile” is such that, in the OCC’s opinion, the bank is not adequately capitalized.

That risk profile is linked with eight categories graded by the OCC: credit, interest rate, liquidity, price, operational, compliance, strategic and reputation.

The regulator for federally chartered lenders assesses the quantity of risk, quality of risk management, aggregate level of risk and the direction of risk for each of the risk categories.

Increased scrutiny of One Bank’s loan operations led to the departure last year of its No. 2 man: Mike Heald, executive vice president, chief operating officer and a member of the board.

Preceding Heald’s exodus, Kelly Harbert was fired as senior vice president and commercial loan officer on June 3, 2010. She was ultimately sentenced to 30 months in federal prison and ordered to pay $441,912 in restitution after pleading guilty to bank fraud, money laundering and using someone else’s Social Security number to make fraudulent loans for her own benefit.

One Bank posted a $4.3 million loss for 2010 and a month later was working under a supervisory agreement with the OCC. That 2011 agreement was renewed in May of this year, four months before the OCC issued its prompt corrective action directive.

The directive led to the ouster of Stuart and the hiring of Gerald F. “Jerry” Pavlas as his replacement. Before accepting the job offer, Pavlas held the post of CEO at Southwest Securities of Dallas. 

 

 

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