Additionally, the thrift’s board also must submit by Nov. 30 a plan to the OTS detailing how Liberty will grow its capital, the Oct. 19 order states. And the OTS has ordered that Liberty Savings adopt a business plan and submit it to federal regulators for review, according to government documents.
Company officials could not be immediately reached for comment Saturday, Oct. 24.
Under the order, Liberty Savings also cannot originate new commercial real estate loans or lines of credit secured by commercial real estate until it cuts the size of its current portfolio of commercial real estate loans.
According to the OTS, a March 30 examination of the thrift found that it “has engaged in unsafe or unsound banking practices, including operating with an inadequate level of capital protection for the volume, type and quality of assets held by (Liberty Savings) and with an excessive level of classified loans.”
According to Liberty Savings’ web-site, it has 41 branches offices in Ohio, Colorado, Florida and South Carolina.
In Greene and Montgomery counties, Liberty had 13 offices and $400 million in deposits as of June 30, giving it about 3.8 percent of the Dayton metropolitan statistical area’s deposit market share, according to the Federal Deposit Insurance Corp.
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