First Bank of Beverly Hills, a $600 million-asset thrift based in Calabasas, Calif., said that the Office of Thrift Supervision has lifted restrictions on its growth and operational authority.
In 1999 the OTS deemed First Bank a "troubled institution" because it lacked a chief executive officer, among other problems, and directed the thrift to strengthen its management and improve its rate risk management policies. According to vice president Carl Raggio, the federal agency rescinded the order last week because the thrift had complied with its directives.
First Bank has an agreement to acquire the Beverly Hills branch and deposits of Los Angeles-based Fidelity Federal Bank. That deal, announced in May, is expected to be completed by June 30. The deal is not related to the OTS action, said Richard S. Cupp, First Bank's president and chief executive.
First Bank of Beverly Hills is the banking subsidiary of Wilshire Financial Services Group, a $2.2 billion-asset company headquartered in Portland, Ore.