Despite a consent agreement with federal regulators made public Friday requiring major changes, Bank of the Lakes’ president says its Oologah branch is not in jeopardy.
“Heavens no, we aren’t closing any branches,” President Mike Gibson told the Leader in a text message Saturday. “We aren’t laying off people.”
The U.S. Comptroller of Currency on Friday made public two consent agreements with the bank which were signed Feb. 27.
One acknowledged that Bank of the Lakes is classified as being in “troubled condition.” It also said that a more detailed consent order had been signed to resolve planned “cease and desist proceedings against the Bank” through “a Notice of Charges for unsafe and unsound banking practices relating to asset quality, earnings and management.”
The bank’s Dec. 31, 2012 call report to the Federal Deposit Insurance Corporation (FDIC) showed total write-offs of $3.71 million (including $3.008 million in commercial and industrial loans, $434,000 on non-farm, non-residential loans and $250,000 in non-farm, non-residential lines of credit).
That report showed a drop in equity capital from $19.805 million at the end of the 4th quarter 2011 report to $15.38 million for the report for the same date in 2012. The bank reported a net loss of $4.123 million.
The Comptroller outlined a wide range of actions the bank’s board is required to take between now and June 30 to correct the problems. Restrictions and reporting requirements will extend for at least three years.
Gibson said in a statement published by the Tulsa World Saturday, “To date, our bank’s plan is working.”
He said bank management, staff and stockholders believe that with the year-end write-offs, the bank has a bright future.
Bank of the Lakes was founded in Langley in 1976 and is now headquartered in Owasso. Its other five branches are in Oologah, Collinsville, Catoosa, Ketchum and Bernice.
Some additional details on the situation will be published on oologah.net, and a complete story will appear in this week’s print edition of the Leader, which will be on sale Wednesday.