SolutionsBank Corp. reached an agreement with regulators to reduce its loan concentration in the commercial real estate market and strengthen its overall condition.
The agreement was signed March 2 and involves SolutionsBank Corp., the Federal Reserve Bank of Kansas City and the Kansas state bank commissioner. Overland Park-based SolutionsBank Corp. is the holding company for SolutionsBank.
SolutionsBank must submit a written plan for strengthening its commercial lending business within 60 days. The bank had $506 million in assets on Dec 31.
The agreement restricts the bank from extending or renewing credit to any company that is involved in loan losses with the bank or that is classified as “doubtful” or “substandard” without direct approval from the bank’s board. The board then must document reasons for extending or renewing the credit line.
You must log in to post a comment.