Nara Bancorp in Los Angeles can now pay dividends and issue trust-preferred securities without prior regulatory approval, it said, but still must abide by other restrictions of a 2005 regulatory order.
The $2 billion-asset Nara said late Monday that it will no longer be required to seek the approval of the Federal Reserve Bank of San Francisco before paying dividends on its trust-preferred securities or paying any other dividend of $800,000 or less. The company can now also issue trust-preferred securities, increase borrowings, and renew debt without prior Fed approval.
Nara also said that its Nara Bank does not have to seek prior approval from both the Fed and the California Department of Institutions to pay dividends of up to $400,000.
In July 2005, Nara agreed to a memorandum of understanding with its regulators that prohibits it from appointing directors, changing the duties of its chief executive, or paying dividends without the regulators' blessing. Earlier that year, Nara had been forced to restate earnings for 2002 and 2003 after auditors discovered it had improperly accounted for a compensation package for its former president and chief executive, Benjamin Hong.
