Gastonia-based Alliance Bank and Trust Co. has been ordered to review its management and create a plan to resolve problem loans as part of an agreement it has entered into with the FDIC. The consent order went into effect Feb. 1 but was announced Tuesday in a securities filing.

Consent orders do not mean the bank is in imminent danger of failing, but significantly increase the role of regulators in the bank's operations.

Alliance Bank and Trust was chartered in 2004 and now operates four branches in Gastonia, Kings Mountain and Shelby. It has struggled in recent quarters under the weight of bad loans.

In the third quarter, parent company AB&T Financial Corp. reported a loss of $1.4 million as charge-offs and provisions for bad loans increased.

The parent company has not yet reported fourth-quarter earnings. In a quarterly report to the FDIC, the bank reported a net loss of $2.4 million.

The bank still has $3.5 million on its books from the federal Troubled Asset Relief Program, according to the most recent data from the U.S. Treasury.

Under the consent order, the bank will have 30 days to hire a consulting firm to review its management. Within 120 days, the bank will need a "qualified" management team.

It will have to maintain higher minimum capital ratios, write down loans doubtful for collection and create a plan to resolve questionable loans, among numerous other provisions.

The bank will not be able to pay dividends or bonuses without approval.

The bank's board will also have to meet monthly to review the bank's financial state and loan portfolio.

Attempts to reach Alliance Bank and Trust executives for comment were unsuccessful.