First NBC in La. Adds Reg Order to List of Challenges

First NBC Bank Holding in New Orleans can add a regulatory order to its growing list of issues.

The $4.9 billion-asset company said in a press release Thursday that its bank entered into a consent order with the Federal Deposit Insurance Corp. and the Louisiana Office of Financial Institutions on Nov. 10.

Under terms of the order, the bank must review its management, its loan review and problem-loan identification processes and its loan portfolio policy and procedures. The bank is also required to create plans to sustain adequate liquidity, reduce classified assets and meet certain capital requirements, among other things.

The order also mandates that the bank enhance internal controls and improve its on-balance-sheet liquidity to achieve higher benchmarks that include the percentage of total deposits and total liabilities.

The bank must also submit a plan for maintaining a Tier 1 leverage capital ratio of at least 10%, a Tier 1 risk-based capital ratio of at least 13% and a total risk-based capital ratio of 15% or more.

First NBC warned last month that regulators had "deemed it to be in troubled condition." At June 30, First NBC’s Tier 1 risk-based ratio and total risk-based capital ratio were both below 7.3%.

"First NBC is currently profitable and is positioned to extend our commercial customer relationships and increase share of wallet while enhancing its regulatory position," Shivan Govindan, First NBC's chairman, said in the release.

"Many of the matters outlined in the consent order were initially identified earlier this year," he added. "Since that time, First NBC has devoted significant time and resources to strengthening our business and addressing the matters raised."

Separately, First NBC disclosed that it had rescheduled its annual meeting, which was supposed to be held Nov. 18. It will now be held Dec. 8 in New Orleans.