SouthShore Community Bank in Apollo Beach has entered into a consent order with federal and state regulators, agreeing to additional oversight to bolster its finances.
The agreement, reached after discussions with the Federal Deposit Insurance Corp. and the Florida Office of Financial Regulation, dictates remedial actions that the community bank must take to increase its capital, charge off more troubled loans and reduce high-risk credit. It forbids the bank from extending or renewing credit to any borrower whose debt has already been charged off or classified even partially as doubtful.
In a statement Friday, the bank maintained that the order in no way impacts the ability of the bank to transact business with customers. "We take the entry of this order seriously and are committing the necessary resources to this effort in order to obtain full compliance as quickly as possible," SouthShore board chairman Robert Phillips said.
Southshore is one of six bay area banks which recently received a "zero-star" rating for the fourth quarter from Florida ratings agency Bauer Financial. The lowest possible rating in the company's five-star system indicates a bank is "troubled and problematic" and is vulnerable to failing.
Eighteen Florida banks have failed since the beginning of 2008.