From City BizList Baltimore
Effective June 29, 2010, Cecil Bancorp, Inc., a registered bank holding company and its wholly owned bank subsidiary, Cecil Bank, a state-chartered bank and a member of the Federal Reserve System entered into a written agreement with the Federal Reserve Bank of Richmond and the State of Maryland Commissioner of Financial Regulation.
Pursuant to the Agreement, the board of directors of the Company has agreed to utilize its financial and management resources to serve as a source of strength to the Bank. Under the terms of the Written Agreement, the Bank has agreed to develop and submit for approval written plans to: (1) strengthen board oversight of the management and operations of the Bank; (2) strengthen credit risk management practices; (3) strengthen management of credit concentrations; (4) enhance its lending and credit administration program; (5) provide for the ongoing review and grading of the Bank’s loan portfolio by a qualified independent party; (6) improve the Bank’s position through repayment, amortization, liquidation, additional collateral, or other means on each loan or other asset in excess of $250,000, including other real estate owned, that is (i) 90 days or more past due as of the date of the Written Agreement, (ii) that is on the Bank’s problem loan list, or (iii) that was adversely classified in a report of examination of the Bank; (7) for the use or disposition of real property acquired for Bank premises; (8) provide for the maintenance of an adequate allowance for loan and lease losses; (9) provide for contingent liquidity funding; (10) improve the Bank’s earnings and overall condition.; and (11) address criticisms in the most recent examination report including independent testing for BSA/AML compliance. The Company and the Bank have further agreed to take necessary steps to ensure compliance with various laws and regulations.