The consent order provides the bank with a roadmap to address the impact of the challenges presented during this prolonged economic downturn, which includes many plans and actions that the bank has already adopted and begun to implement. The Bancorp expects to enter into a similar agreement with the Federal Reserve Board of Governors, which regulates the holding company.
The agreement requires the bank to improve its capital position and increase its Tier 1 capital to maintain a minimum leverage capital ratio of 10% and total risk-based capital ratio of 12%, as well as the development of a contingency plan if those ratios are not attained in a timely manner.
Other key aspects of the agreement provide for the bank to maintain an adequately funded allowance for loan and lease losses; and develop written plans to reduce classified assets, reduce loan concentration risks and increase traditional liquid assets.
Robert McKean, CEO of the Albina Community Bank, said: “We will take the necessary steps to meet the terms of the agreement as quickly as possible and position ourselves for a long and healthy future.”
Cheryl Cebula, president and COO of the Albina Community Bank, said: “We continue our commitment to supporting our customers in the Portland communities, and are seeing significant growth in new business and new customer relationships. Our customers are responding to our local banking approach and are bringing deposits to us. In fact, our core deposit base has grown substantially from a year ago.”
