The Federal Deposit Insurance Corp. has ordered a small Bridgeport community bank to raise more than $1 million in capital and re-assess its management and staff, according to a regulatory filing.
The Community’s Bank in Bridgeport, which has $46 million in assets and one branch, was told by the FDIC last month that it must increase its Tier 1 capital within 90 days by at least $1.03 million to satisfy regulatory minimums.
Tier 1 capital is a key measure of a bank’s financial strength, and is partly a buffer against financial losses. It consists of a bank’s reserves, retained earnings, and common stock.
The FDIC is also requiring The Community’s Bank to retain a consultant to assess its management and staffing needs. The company must also submit a strategic plan assessing its current financial condition and plans for increasing future profitability.
The Community’s Bank had $46 million in assets and 12 employees at the close of 2009, down from $55 million in assets and 14 employees at the end of 2008, according to FDIC data.
Its deposit base also shrunk last year by 17 percent, to $42 million.
Peter Hurst, Jr., president and CEO of the minority-owned bank, said the company is looking at large, national institutions to try to raise capital. He said some larger banks could be interested in investing in the company because it is a community development financial Institution, which means its sole purpose is to assist low- and moderate-income individuals and businesses.
Investing in that type of financial institution would help boost a bank’s Community Reinvestment Act credit, Hurst said, making it a potentially attractive investment.
 “We are going to improve and we plan to get bigger and better,” Hurst said.
The Community’s Bank opened in 2001, after a group of investors purchased three former Fleet Bank branches in Hartford County and Bridgeport.
In 2004 the bank sold its Hartford area operations to focus solely on the Greater Bridgeport community.
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