Fidelity National of West Memphis Popped by OCC

Fidelity National Bank of West Memphis has entered into an agreement with its chief federal regulator, the Office of the Comptroller of the Currency, to shape up its asset quality.

CEO Charles Horton called the agreement "a sign of the times."

The agreement was signed July 20 but not made public until Thursday.

Fidelty, which had assets of $327.3 million as of June 30, has been profitable. It posted net income of $5.24 million in 2010 and had earned $2.13 million in the first six months of 2011.

Although the bank remains well-capitalized and profitable, "We have had an increasing amount of problem loans," Horton told, primarily commercial real estate loans.

Horton was named CEO of Fidelity National in March after serving as interim CEO for amost two years while Michael Murphy was on medical leave. Murphy has now retired.