Tidelands hit with state, federal orders
Tidelands Bank has entered into consent orders with the Federal Deposit Insurance Corp. and the SC State Board of Financial Institutions, effective Dec. 28, as a result of the regulators’ annual joint examination earlier this year.
According to information filed with the US Securities and Exchange Commission, Mt. Pleasant-based Tidelands, a subsidiary of Tidelands Bancshares, is required to take myriad actions as a result of the consent order, including:
- Ensure that the bank has competent management in place;
- Achieve Tier 1 capital at least equal to 8 percent of total assets and total risk-based capital at least equal to 10 percent of total risk-weighted assets within 150 days and establish a capital plan that includes a contingency plan to sell or merge the bank;
- Implement a plan addressing liquidity, contingency funding, and asset liability management;
- Implement a program designed to reduce the bank’s exposure in problem assets; develop a three-year strategic plan;
- Not declare or pay any dividends or bonuses or make any distributions of interest, principal, or other sums on subordinated debentures without prior regulatory approval;
- Limit asset growth to 10 percent a year; and
- Address various violations of law and regulation cited by the FDIC.
The consent order will remain in effect until modified or terminated by the FDIC and state board.
Tidelands said that while it intends to attempt to comply with the order’s requirements, failure to do so would result in additional regulatory requirements, which could ultimately lead to the bank being seized by regulators.
Through the first nine months of the year, Tidelands has lost $10.5 million and has now posted a deficit of about $25 million in less than three years.
Stock in Tidelands is trading for $1.12 a share.