Posted 5/10/2012 11:13 am
Updated 2 years ago
Allied Bank of Mulberry (Crawford County), one of several banks that fell victim to convicted felon Kevin Lewis, has entered into a consent agreement with regulators with the Federal Reserve Bank of St. Louis.
The bank's holding company, Acme Holding Co., and the holding company's employee stock ownership plan also are parties to the written agreement dated May 2. The agreement covers strengthening credit risk management, lending and credit administration and reducing concentrations of credit risk.
The $176.9 million-asset bank also is restricted from extending, renewing or restructuring any criticized loan without the majority approval of the board of directors.
The criticized loans are from a report of examination conducted by the Federal Reserve and the Arkansas Bank Department dating back to Sept. 26.
The bank was charged to improve its assets that are 90 days or more past due on loans of $200,000 or greater, charge off all assets classified as a loss by any bank examinations and maintain adequate capital.
The agreement also requires improving management of liquidity and interest rate risk.
Dividend payments, new debt and stock redemptions are restricted pending regulatory approval.
The bank, with a staff of 55, recorded a $752,000 profit during the first quarter of 2012.
Allied Bank reported a $1.6 million loss during 2011. Acme and Allied Bank are controlled by the Lex Golden family of Little Rock.
Lewis, the former Little Rock attorney connected to fake special improvement district bonds that cost Arkansas banks some $50 million, has been ordered to pay Allied more than $3.2 million in restitution.
The order is part of his punishment for defrauding at least nine banks of more than $39 million. Lewis was sentenced in December to 121 months in federal prison after pleading guilty to one count of bank fraud.