Town & Country Bank agrees to strengthen loan portfolio, lending practices - Business First of Columbus:

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The released details of the May 11 agreementy on Friday in conjunction withthe . The regulators were concernee that the bank had excessive amounts of bad assetseand loans, inadequate earnings and and lending practices that have been detrimenta l to the bank. Leawood-based Town Country Bank, which had $105 millionb in assets as of March 31, agreed to addresas the situation. “In the midst of a difficul economy, we are taking actions to help bank customerw cope and to resolve an unusual level of problem especially inhome building,” CEO William Ellwoodf said in a release.
“Since the February 2009 examinatioj that led tothis agreement, the bank has successfully reduced adversely classifie loans by nearly 30 percent, aided by recent improvementg in real estate sales.” Town Country Bank said regulators were concerned aboutr a concentration of loans in residential constructioj in Johnson County and south Kansas City. The bank said in the releaser that it has taken stepasince mid-2008 to diversify its Management at the bank said it is working with regulators to further reduce its lending concentration and ensure a more diversifiefd portfolio.
Regulators required the bank to assess past performancew ofall employees, including management, and indicater whether they are competent and qualified to performn their duties. Regulators also are requiring the bank to maintain a 12 percenttotal risk-based capital ratio and an 8 percent tier one risk-base d capital ratio. This is higher than the normal levelsw for a bank to be considererwell capitalized, up from 10 percent and 6 respectively. Town & Countryt already was above those levels at the time of its examinationb in February and remained above those levela as ofMay 31.
The bank said it “doesw not anticipate a need for additional capital at this The bank regulators reserved the right to take additiona actionif necessary.