Suburban Bank & Trust, among the most active Chicago-area banks on Twitter, is being closely followed by federal and state regulators.
And not followed in a good, Twitter-kind-of way.
Earlier this month the Elmhurst-based bank, which has $623 million in assets, was ordered by the Federal Deposit Insurance Corp. and the Illinois Department of Financial and Professional regulation to, among other things, hire an outside firm to review its management, stop making loans to deadbeat borrowers, and restrict its dividend payments.
The bank, which has branches in Elmhurst, Chicago/Beverly, Glen Ellyn, Lemont, Markham, New Lenox, Oak Lawn, Orland Park, Wheaton and Wood Dale , has been ordered to maintain certain capital levels.
As of Dec. 31, the bank exceeded those levels, but it hasn’t yet posted results for the first quarter ended March 31 yet. The regulatory order was signed April 5.
SBT President Donald O’Day said in a statement to ChiFinance that his bank, founded in 1971, is committed to maintaining its capital ratios despite the impact of the downturn in the economy.
“We’ve been pro-active in addressing asset quality, growing revenue and managing expenses, while continuing to make loans and service our customers – most of whom are local families and small businesses,” O’Day said. “We’re absolutely confident that based on the steps we have taken, we’ll emerge an even stronger bank.”
The bank lost $14.8 million in 2010, and 11.5 percent of its loans are seriously delinquent.
Here’s a link to the consent order with the regulators:
Here’s a link to SBT’s year-end financial results:
Here’s a link to its Web site, whose home page features its Twitter stream:
And here’s a link to a Chicago Tribune story last June that mentioned SBT’s social-media efforts (page 3 of article):