Delanco Federal Savings Bank in Delanco, N.J., has agreed to get approval from the Office of Thrift Supervision before making or modifying any commercial loans.
The $129 million-asset thrift, which went public in the spring, also agreed to slow its quarterly asset growth to no more than 2.5%.
Delanco, which signed the OTS plan Dec. 17, has been growing rapidly, using money raised in its stock offering to make loans. Its assets rose 15.8% from March 31 to Sept. 30.
But the Delanco Bancorp unit’s third-quarter loan-loss allowance rose 93%, to $517,000, and its ratio of noncurrent loans to loans rose to 1.70%, from 0.16%, according to Federal Deposit Insurance Corp. data. Delanco disclosed the supervisory agreement in a filing last week with the Securities and Exchange Commission.
