James M. Floyd Jr., president and chief executive officer of The Heritage Bank, announced Thursday that the bank has successfully completed discussions with the Federal Deposit Insurance Corporation and has entered into a consent agreement with the regulatory agency.  

 

The Heritage Bank is headquartered in Hinesville and has a branch in Rincon.

 

The agreement, mostly reflecting initiatives already implemented by the board of directors and bank management, is based on items identified in a periodic regulatory exam recently completed. According to Floyd, the agreement contains a number of stipulations including the reduction of the concentration of commercial real estate as a proportion of the loan portfolio, the reduction of adversely classified assets, increasing capital position, improving liquidity and asset/liability management, and enhancing the budgeting and strategic planning processes.

 

“Our current economic conditions have created a challenging banking environment,” Floyd said. ”The FDIC is working closely with banks to provide the regulatory guidance and direction needed to help banks maintain financial soundness. Our board and management team were aware of the FDIC’s concerns and have been working hard to address the concerns prior to the agreement. ”

 

The consent agreement will not impact day-to-day business, Floyd added. The bank will continue to serve clients’ financial needs. All client deposits are fully insured to the highest limits allowed by the FDIC.  

 

Floyd remains optimistic about the economic climate. 

 

“The bank has a very loyal client base and an incredible team of employees,” he said. “We’re in a good position to move forward.  I think we have

a bright future.”

 

The Heritage Bank operates 32 branches throughout Southeast Georgia.