Hancock Bank & Trust Company (Hawesville, KY) received a public consent order from the FDIC and Kentucky Department of Financial Institutions in August 2013.
The bank had 120 days to bring its Tier 1 Capital above 9% and its Total Risk-Based Capital Ratio above 13%, subject to certain restrictions regarding raising capital. In addition, the bank was entering a liquidity crisis where its correspondent banking relationships either significantly reduced or eliminated capacity to borrow. Legacy high cost of funds, a detriment to earnings, began to leave the tha bank in search of higher rates at competing banks.
Taylor Advisors worked quickly and diligently with the bank to address all the deficiencies mentioned in the consent order. This included creating a profit plan, a liquidity and contingency funding plan, and a strategic plan to address pricing policies, goals for asset growth and capital adequacy, forecasts to maintain a sound liquidity position. In addition to plan formation, Taylor Advisors was instrumental in executing the plans to manage through the liquidity and capital crisis.
The consent order was terminated by the FDIC in January 2015.
For details on the performance of Taylor Advisors’ investment advisory clients, please contact us at at email@example.com or 502-412-2205.