Jul 21 2009 Emmanuel Olaoye
As the number of bank failures in the state rises to 15, a Georgia bank has reached an agreement with the Federal Reserve to improve its financial condition. The written agreement, which was released by the Fed yesterday, says that Park Avenue Bancshares will improve its credit risk management, lending practices, and the quality of its assets. PAB is the parent company of the Park Avenue Bank, a community bank that provides a variety of services including commercial real estate lending and personal checking services.
Jay Torbert, chief executive, said that the issues stemmed from a bank examination report that was issued in January. He said that the bank had "made substantial progress" in addressing its problem assets and was working to address the concerns of the Fed and the Banking Commissioner for the State of Georgia.
The agreement requires PAB to submit a plan to the Fed within 60 days on how it will minimize its losses from commercial real estate loans. PAB is also banned from paying dividends without the approval of the Fed and the Banking Commissioner for the State of Georgia.
