The Office of the Comptroller of the Currency issued the consent order against the bank Jan. 26, according to a filing with the U.S. Securities and Exchange Commission Wednesday.
Community West's parent, the $633 million-asset Community West Bancshares, said in the filing that the bank must establish a plan to mitigate its overall risk profile, including properly accounting for risk in its loan portfolio as well as its foreclosed assets and loan loss allowance. The bank also must form a management succession plan and fix "deficiencies" in the oversight of management and the board.
The OCC also ordered Community West to implement a three-year plan to boost its total risk-based capital ratio to 12%. At Dec. 31, its total risk-based ratio was 11.5%.
Community West said Wednesday that it lost $8.6 million in the fourth quarter, largely because of a $6.7 million valuation allowance against its deferred tax assets and higher provisioning. The company lost $2.3 million in the quarter that ended Sept. 30.
In early November, Community West named Martin E. Plourd as the new president and chief executive for its banking unit and vice president of the parent company. He replaced longtime CEO Lynda Nahra, who left in July to become a regional president PacWest Bancorp in Los Angeles.
Plourd started as a consultant to the bank in mid-2009.
Be the first to comment on this post using the section below.