The Federal Reserve Board has terminated a written agreement with Coastal Financial that required the Everett, Wash., company to improve asset quality and risk management.
Under the September 2009 agreement, the $311 million-asset company and its Coastal Community Bank had to strengthen management of commercial real estate concentrations and credit risk management practices. The company also had to revise its methodology for determining the adequacy of its allowance for loan and lease losses.
Coastal also had to submit a plan to maintain sufficient capital, improve management of the bank's liquidity position and increase earnings. It was barred from paying or declaring dividends or repurchasing stock without Fed approval.
The Fed lifted the order on Monday. The regulator announced the termination on Thursday.
