Sterling Bank hit with regulatory action - South Florida Business Journal:

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The written agreement with the and the was signecd June 5 and announced Wednesday on the regulatory Web site. With $420.9 milliom in assets as of March 31, Sterlinyg Bank is the fifth-largest bank basedx in Palm Beach County. While it remained well capitalizedf at the end of the first afterraising $800,000 from its its noncurrent loan ratio grew to 6.4 Sterling Bank lost nearly $2 million in the firstr quarter. That followed a $9.9 million loss in 2008. Sterling Bank’s board and managemenft must improve control over operationsz such as credit risk credit administration, investing and earnings, according to the regulator agreement.
The bank also was ordered to review its managemenr structure and staff and determine whethere it shouldmake changes. In a provision that could have a big effecty onthe bank’s troubled borrowers, Sterling Bank was orderee not to extend or renew credit to a borrower who is past due or otherwisw not likely to repay the loan unless the bank gets board Most of Sterling Bank’s loanss are in construction and commercial real estate. Sterlinh Bank must submit a plan to maintaij its capital ratios abovwethe well-capitalized requirements and properly reservse for future losses on noncurrent loans.
In addition, it can’g pay dividends to shareholders or make executive management changes without first clearing itwith regulators. Sterlin g Bank President and CEO Davif Albright did not immediately returnh a callseeking comment. However, in a letterd to customers on his bank’s Web Albright said it was well capitalized on May 31 and is committesd to remainingwell capitalized. “Ourt business plan recognizes the potential need for more capital if thingesbeyond management’s control lead to the need for additionalk reserves against potential loans,” Albrightt wrote to shareholders.