WBRZ - Baton Rouge

BATON ROUGE- Federal and state regulators have ordered American Gateway Bank to shed foreclosed properties and reduce its problem loans.

The bank, which has been in business since 1905, has been under the Federal Deposit Insurance Corp. and Louisiana Office of Financial Institutions consent order since Dec. 21.

American Gateway President Don Ayres said the bank, like many other businesses and people nationwide, was hurt by the economic downturn, in particular real estate loans.

Ayres said he is confident the bank will survive, and no layoffs or branch closures are anticipated.