by Lance Turner
Posted 6/26/2012 08:24 am
Updated 1 year ago
The order, made public last week, was issued May 21 and follows a previous agreement between the bank and its regular issued in January 2011 and reported in Arkansas Business in February 2011.
The latest agreement directs One Bank, which does business as OneBanc, to revise its strategic plan, improve capital levels, fix management deficiencies, and achieve certain capital ratios.
The full order is available here (PDF).
"This is the first letter I've worked under in about 20 years of banking," Layton "Scooter" Stuart, chairman, president and CEO of One Bank, told Arkansas Business when the original agreement was issued last year. "It's a serious document. It calls for a whole lot more time spent monitoring credit risk management."
In the new agreement, the bank must maintain total capital at least equal to 12 percent of risk-weighted assets and Tier 1 capital at least equal to 8 percent of adjusted total assets.
One Bank reported total assets of nearly $456.7 million as of March 31 and a first quarter profit of $519,000.
For 2011, One Bank recorded a profit of $986,000.