OCC: One Bank & Trust's Loan Levels Too High

One Bank & Trust of Little Rock has entered into a formal agreement with the Office of the Comptroller of the Currency after the regulatory agency found that the bank's classified loan levels were too high.

The agreement is a result of the bank's annual safety and soundness examination in late October and early November.

"This is the first letter I've worked under in about 20 years of banking," said Layton "Scooter" Stuart, chairman, president and CEO of One Bank. "It's a serious document. It calls for a whole lot more time spent monitoring credit risk management."

One Bank doubled its loan loss provision last year while generating net income of $1.3 million for 2010.

The agreement details measures that the bank must take to enhance the quality of its loan administration and respond to internal procedural and monitoring issues.

It requires, among other matters, for the bank to reduce the level of criticized assets, to maintain certain capital ratios and to revise its strategic and liquidity plans.

In the bank's announcement, Stuart said that "entering into the agreement in no way endangers depositors and will have no impact on customers. We are fundamentally sound."

The bank earlier notified its customers and staff after the agreement was signed on Jan. 20 and posted the announcement on its website. The OCC made its announcement Friday.

One Bank & Trust ended the year with total assets of $448 million and total deposits of $373 million. The lender operates 10 full-service branches in the Greater Little Rock market.