News alert: American Gateway Bank ordered to address $35M in problem loans

American Gateway Bank President and CEO Don Ayres says the 107-year-old bank is taking steps to address about $35 million in problem loans—which account for roughly 11% of the bank’s total portfolio—that led federal and state regulators to issue a consent order on Dec. 21. The Port Allen-based bank has agreed to the consent order from the Louisiana Office of Financial Institutions and the Federal Deposit Insurance Corporation, which effectively requires it to outline a plan to improve the quality of the loans, implement the plan according to a timeline and maintain a minimum capital-to-asset ratio. Ayres says the bank is in good financial health and that he does not anticipate any branch closures or employee layoffs as a result. While the bank posted a $120,000 loss in 2011, Ayres notes it profited $400,000 in the fourth quarter and expects to make a profit in 2012. He says 74% of the problem loans are currently less than 30 days past due and are being paid upon as agreed. “We’ve been working on this for the past two or three years, and we’ll continue cooperating with (the LOFI and FDIC) to work through this,” Ayres says. American Gateway Bank was one of nine banks throughout the country issued a consent order from the FDIC for problem loans in December. Read more in Daily Report PM. —Steve Sanoski