The troubled parent company of John Hanson Bank FSB announced yesterday that federal regulators are revoking a capital agreement with the bank because monetary requirements weren't met.
The Treasury Department's Office of Thrift Supervision will ask Bethesda-based John Hanson Bancorp Inc. to consider a consent decree that could impose such restrictions as a prohibition on all lending and investments, or even the appointment of a conservator or receiver, John Hanson President and Chief Operating Officer Jack V. Pollock said.
"That [receivership] is the next administrative step they could take," Mr. Pollock said.
His company has yet to receive the consent agreement, which must be signed by April 17, Mr. Pollock said.
"For the interim, we're going to be operating the bank," Mr. Pollock said, discounting a local radio station report saying John Hanson Bank had been
The revocation of the bank's capital plan takes effect April 17. Under the terms of the agreement, John Hanson Bank had to be in compliance with three financial criteria: tangible capital, core capital and risk-based capital. The thrift missed the minimum levels established for all three, based on an examination conducted by OTS during the quarter that ended March 31, Mr. Pollock said.
John Hanson Bancorp Inc., which is independent and stockholder-owned, failed to raise $10 million in capital for its bank to satisfy the terms of the capital plan, according to a statement from the company. Earnings projections also were missed.
"I guess at this point, we had been operating under an approved plan with which we were not in compliance," Mr. Pollock said. "The question is, can we get in capital compliance, and that's a question I don't know the answer to at this point."
When a capital plan is submitted to OTS, it's because a financial institution can't meet capital requirements and wants to prevent federal regulators from implementing strict financial controls, Paul Lockwood, an OTS spokesman, said. He declined to discuss the specifics of John Hanson's situation.
"It just against our policy to comment on an individual institution's capital plan," Mr. Lockwood said.
"Speaking in generalities, if OTS withdraws a plan, the first thing that happens is the institution can submit a new one."
Mr. Pollock said that it was too early to determine if that option is feasible.
An institution with 15 branches and $875 million in assets, John Hanson Bank is currently involved in talks with potential investors to improve its capital position, according to the John Hanson Bancorp statement.
For the quarter that ended Dec. 31, John Hanson Bancorp reported a loss of $268,000. It had a profit of $44,000 for the same period in 1989. Also, the firm revealed in December that it couldn't raise $10 million to comply with OTS requirements.