First National Bank of Olathe officially has been declared in “troubled condition,” according to a consent agreement released Friday by the Office of the Comptroller of the Currency.
The bank, which has $904.4 million in assets, is the 11th largest in the Kansas City market based on market share of deposits, according to a Kansas City Business Journal list of top area banks.
The OCC gave the bank 90 days from the consent agreement’s Jan. 21 signing date to increase its capital reserves. The bank regulator also increased those reserve requirements beyond the normal levels. First National Bank of Olathe must maintain an 11 percent total risk-based capital ratio. Regulators normally require banks to maintain a 10 percent ratio to be considered well capitalized, and a minimum of 8 percent to be adequately capitalized. First National Bank of Olathe had a 6.1 percent total risk-based capital ratio as of Dec. 31, according to the FDIC.
The bank, which has $904.4 million in assets, is the 11th largest in the Kansas City market based on market share of deposits, according to a Kansas City Business Journal list of top area banks.
The OCC gave the bank 90 days from the consent agreement’s Jan. 21 signing date to increase its capital reserves. The bank regulator also increased those reserve requirements beyond the normal levels. First National Bank of Olathe must maintain an 11 percent total risk-based capital ratio. Regulators normally require banks to maintain a 10 percent ratio to be considered well capitalized, and a minimum of 8 percent to be adequately capitalized. First National Bank of Olathe had a 6.1 percent total risk-based capital ratio as of Dec. 31, according to the FDIC.
I wonder if the 55 million dollar loss had anything to do with the new declaration by the Office of the Comptroller of the Currency? The bank only had 35 million dollars of total equity as of December 31st, 2009. Also as of December 31st, the bank had 98 million dollars in loans that were past due at least 90 days.
I'm no accountant, but I'm sure these numbers don't had to successful banking practices. Why didn't the First National Bank of Olathe start steps prior to the defaulting loans to prevent the problems they are currently experiencing?
I do not bank at the bank but I have had some experiences and they have been positive. I hope that the Kansas City's 11th largest bank is able to get their risk capital ratio to 11 percent within the timeline.
Let us know what you think or add to our blog by writing a comment.
Blog post written by the Dowell Taggart Team of RE/MAX Best Associates
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