The First National Bank & Trust in Syracuse is taking steps to strengthen its financial position in agreement with the U.S. Treasury Department’s bureau of the Comptroller of Currency.
The bank remains financially strong and has already accomplished the majority of recommendations in a Nov. 2 agreement, said Alan Britton, the bank’s senior vice president.
The regulatory authority over national banks is requiring the Syracuse bank to hire an outside consultant to evaluate its management and review its loan portfolio.
Britton said the action is triggered by problem loans that have been impacted by the national economy. He said the problem loans are not local.
“We have, over the recent five or so years, diversified our loan portfolio by purchasing participation or pieces of loans on commercial real estate outside our traditional commercial area,” he said.
“The bank is financially strong. In fact, we have more capital, which is the bank’s net worth backing us, than at any other time over the last two decades,” he said.
In response to the troubled real estate economy, the bank has offered restructuring plans to many of its customers.
It has also moved cash into reserves that might be needed if certain loans continue to deteriorate.
Nebraska City, Neb. —
