Federal Regulators Order Harrington Bank to Meet Strict Requirements | News
News
INDY Week's news blog

Archives | RSS

Friday, August 7, 2009

Federal Regulators Order Harrington Bank to Meet Strict Requirements

Posted by on Fri, Aug 7, 2009 at 2:32 PM

Chapel Hill-based Harrington Bank ads tell customers, "You deserve banking like this." In a 28-page report issued July 21, federal regulators disagreed.

They notified the bank that it must stop issuing land and construction loans, develop more stringent loan requirements and bolster its capital. Under the supervisory agreement reached with the Office of Thrift Supervision (OTS), the primary regulator of thrift organizations including savings banks and loan associations, the bank will face federal takeover unless it does just that by the end of the calendar year.

Harrington, which was named the large business of the year by the Chapel Hill-Carrboro Chamber of Commerce for 2008, faces a far different plight now.

 OTS found that the bank "failed to comply with the requirements of laws and regulations to which the Association is subject, failed to adopt and implement appropriate and comprehensive operational and risk management practices and strategies, and failed to identify and correct other deficiencies and weaknesses in its operations."

The agreement outlines that Harrington must:

  achieve a risk-based capital ratio of 8 to 12 percent and prepare and maintain a written plan to keep that level;

  reduce operating expenses, adopt a liquidity plan and create more scrupulous loan requirements;

  stop originating or purchasing loans for new construction, nonresidential real estate and land;

• OK all executive pay changes with OTS.

Bank President and CEO Larry Loeser is on vacation until Monday. Harrington officials are directing media inquiries to him when he returns.

Harrington Bank has a main office on N.C. Hwy 54 and Farrington Road and has two branches in Chapel Hill and one in Raleigh.

You can find the full agreement here.

Triangle Business Journal, which broke this story Friday morning, originally reported that Harrington was issued a "cease and desist order." TBJ has since amended that to a "supervisory agreement."

Tags: ,

Pin It

Comments

Subscribe to this thread:

Add a comment

INDY Week publishes all kinds of comments, but we don't publish everything.

  • Comments that are not contributing to the conversation will be removed.
  • Comments that include ad hominem attacks will also be removed.
  • Please do not copy and paste the full text of a press release.

Permitted HTML:
  • To create paragraphs in your comment, type <p> at the start of a paragraph and </p> at the end of each paragraph.
  • To create bold text, type <b>bolded text</b> (please note the closing tag, </b>).
  • To create italicized text, type <i>italicized text</i> (please note the closing tag, </i>).
  • Proper web addresses will automatically become links.

Latest in News



Twitter Activity

Comments

I was diagnosed of hepatitis B in 2012,I have tried all possible means to get cure but all my effort …

by Austin calnor on The Problem with N.C.’s Religious Exemption Law (News)

"Since late November, Henderson County in Western North Carolina has seen 20 cases of pertussis, or whooping cough, and has …

by Liza Coutu on The Problem with N.C.’s Religious Exemption Law (News)

Most Read

Most Recent Comments

I was diagnosed of hepatitis B in 2012,I have tried all possible means to get cure but all my effort …

by Austin calnor on The Problem with N.C.’s Religious Exemption Law (News)

"Since late November, Henderson County in Western North Carolina has seen 20 cases of pertussis, or whooping cough, and has …

by Liza Coutu on The Problem with N.C.’s Religious Exemption Law (News)

What part of illegal don't they understand. Congress is considering the DACAs plus all other illegal aliens in a bill …

by john1050 on Durham Church Offers Immigrant Sanctuary from Deportation (News)

From the WRAL story:
http://www.wral.com/former-wake-register-o…
"John Stephenson, the county's internal auditor, said an average of $1,100 to …

by Mojo on Indictments in Wake Register of Deeds Scandal Charge Laura Riddick with Embezzling $926,615 (News)

Hopefully Indyweek will remember all this the next time they endorse a Republican (over and over again).

by Robert Larson on Indictments in Wake Register of Deeds Scandal Charge Laura Riddick with Embezzling $926,615 (News)

© 2017 Indy Week • 320 E. Chapel Hill St., Suite 200, Durham, NC 27701 • phone 919-286-1972 • fax 919-286-4274
RSS Feeds | Powered by Foundation