Smithtown Bancorp must report to Fed
There is now another regulatory agency that the troubled Smithtown Bancorp must satisfy as it digs its way out of problems caused by a pile of bad commercial real estate loans.
The Federal Reserve Board Monday added itself to the State Banking Department and the Federal Deposit Insurance Corp., the agencies that already have the company, owner of the Bank of Smithtown, under a consent order.
Until the Hauppauge-based company shows it's in solid financial shape, it is barred by all three agencies from paying dividends or increasing its own debt.
"It's nothing new," said Bradley Rock, chairman and chief executive of Smithtown Bancorp.
The bank company already must show the FDIC and the state Banking Department that it is meeting certain capital requirements by Wednesday. Rock said he wouldn't be able to comment on whether those goals have been met until the company reports its second quarter earnings near the end of July.
If the bank hasn't met those requirements, it will have another 60 days to come up with a written plan to do so.
The bank has 30 branches and $2.43 billion in assets. As of the end of the first quarter, it had $218.8 million in bad loans. The company lost $13.8 million in the first quarter.
Sarra Sounds Off, Season 3, Ep. 6: Top football teams in action and soccer playoffs roundup Gregg Sarra sounds off on Farmingdale vs. Massapequa and the battle between Longwood and Floyd, plus Michael Sicoli recaps some of the playoff soccer games, an update on the high school fantasy football standings and the plays of the week.
Sarra Sounds Off, Season 3, Ep. 6: Top football teams in action and soccer playoffs roundup Gregg Sarra sounds off on Farmingdale vs. Massapequa and the battle between Longwood and Floyd, plus Michael Sicoli recaps some of the playoff soccer games, an update on the high school fantasy football standings and the plays of the week.
