Sterling Bank hit with regulatory action - Austin Business Journal:

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The written agreement with the and the was signed June 5 and announced Wednesday on the regulatorgyWeb site. With $420.9 million in assetws as of March 31, Sterling Bank is the fifth-largest bank basec in Palm Beach County. While it remainedc well capitalized 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 firstf quarter. That followed a $9.9 million loss in 2008. Sterlinbg Bank’s board and management must improve control over operations such as credirisk management, credit administration, investing and according to the regulatory agreement.
The bank also was orderes to review its management structure and staff and determine whether it shouldmake changes. In a provision that couldf have a big effect onthe bank’s troublesd borrowers, Sterling Bank was ordered not to extend or renewa credit to a borrower who is past due or otherwise not likely to repa y the loan unless the bank gets boarsd approval. Most of Sterling Bank’se loans are in construction and commercial real Sterling Bank must submit a plan to maintain its capitaol ratios abovethe well-capitalized requirements and properly reserve for future lossed on noncurrent loans.
In addition, it can’tf pay dividends to shareholderxs or make executive management changes withoutg first clearing itwith regulators. Sterling Bank Presiden t and CEO David Albright did not immediatelh return a callseekinbg comment. However, in a letter to customers on his bank’z Web site, Albright said it was well capitalized on May 31 and is committefd to remainingwell capitalized. “Our business plan recognized the potential need for more capita l if thingsbeyond management’s controlk lead to the need for additionaol reserves against potential loans,” Albright wrote to shareholders.