NASB Financial, Inc. Announces Supervisory Agreement
NASB Financial, Inc. (the "Company") (NASDAQ: NASB) announced today that its subsidiary institution, North American Savings Bank (the "Bank") has agreed to the terms of a Supervisory Agreement with the Office of Thrift Supervision ("OTS"), the Bank’s primary federal regulator. The agreement is a result of a regulatory examination conducted by the OTS in January 2010.
The agreement requires, among other things, that the Bank revise its policies regarding internal asset review, obtain an independent assessment of its allowance for loan and lease losses methodology and conduct an independent third-party review of a portion of its commercial and construction loan portfolios.
The agreement also directs the Bank to provide a plan to reduce its classified assets and its reliance on brokered deposits, and restricts the payment of dividends or other capital distributions by the Bank or the Company during the period of the agreement. The agreement did not direct the Bank to raise capital, make management or board changes, revise any loan policies or restrict lending growth.
The Bank received written communication from OTS that, notwithstanding the existence of the Supervisory Agreement, the Bank will not be deemed to be in “troubled condition.”"This agreement is not expected to have any impact on the day-to-day operations of the Bank or our relationship with customers or our employees," said Keith Cox, North American Savings Bank’s President. “The bank's capital ratios are significantly above regulatory minimums and senior management is actively addressing the issues outlined in the agreement." The Bank's core and total risk-based capital levels at March 31, 2010, were 11.5 percent and 14.9 percent, respectively. Under regulatory guidelines required by the OTS, a typical thrift is considered "well capitalized" if its core and total risk-based capital ratios exceed 5.0 percent and 10.0 percent, respectively. “Like many financial institutions throughout the country, North American continues to manage through a challenging real estate environment," said David Hancock, chairman and CEO. "These challenges have certainly been considerable. However, our continued strong core earnings and capital levels provide us the tools to successfully manage our way to more robust economic times.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV