SAN FRANCISCO - Bank of San Francisco said it completed the first phase of its capital restoration plan, selling $4 million of series C preferred stock to Putra Masagung, the company's majority stockholder.
As reported Aug. 11, Bank of San Francisco received a binding commitment from Putra Masagung tp invest $4 million before Aug. 31, and an additional $2 million by Sept. 30. The investments are part of a restoration plan the bank submitted to the Federal Deposit Insurance Corp.
Separately, Bank of San Francisco said that as of Aug. 18 it had consented to the FDIC's proposed cease and desist order and the California State Banking Department's final order.
The FDIC order requires Bank of San Francisco to raise its capital ratios, reduce nonperforming assets, and pay no dividends without prior congent from the FDIC and the state.
