EL RENO — After doubling in size over the past five years, The Bank of Union, one of the state's oldest community banks, is under orders from regulators to boost its capital and make other reforms.
In an agreement with the Federal Deposit Insurance Corp. and the Oklahoma Banking Department made public last week, The Bank of Union is ordered to shore up its capital position and make lending reforms.
The Bank of Union had a troubled asset ratio of 166 percent in March, according to its most recent call report with FDIC. A troubled asset ratio over 100 percent can be an indication that a bank is under stress and struggling with delinquent loans.
The Bank of Union has undergone a period of rapid growth in assets over the past five years, thanks in part to the booming energy sector and agricultural activity in Canadian County.
Because of the economic growth, the bank has grown from $190 million in assets five years ago to $400 million, Bank President John Shelley said.
However, the bank's infrastructure and policies had not kept pace with its unprecedented growth, Shelley said.
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