Pacific West Bank in West Linn, Ore., is selling its problems and preparing to raise capital.
The $72 million-asset bank announced late Tuesday that last month it sold $1.7 million, about a quarter of the $6.9 million of nonperforming assets it had at the end of the second quarter. An additional $907,000 of nonperformers are expected to close this month.
The bank was adequately capitalized at the end of the second quarter, with a total risk-based capital ratio of 8.45%. The bank said it intends to commence a stock offering within the next 30 days to recapitalize and come into compliance with a regulatory order. It reported a loss of $906,000 for the second quarter, widening its loss by 78% from a year earlier.