Pacific Commerce Bank (PFCI) has completed corrective steps mandated by the Federal Reserve Bank of San Francisco.
The regulator lifted its written agreement with the Los Angeles bank on Aug. 28, according to a Pacific Commerce news release. The 2011 agreement required Pacific Commerce to strengthen its board oversight, improve its lending procedures and hire a consultant to assess its corporate governance.
The California Department of Business Oversight in July lifted similar regulatory orders for Pacific Commerce. The $163 million-asset lender had a Tier 1 leverage ratio of 13.77% and total risk-based capital of 18.62% as of June 30, according to the Federal Deposit Insurance Corp.
"Release of the written agreement completes the turnaround for Pacific Commerce Bank and sets us on the path towards implementation of our strategic plan of growth by acquisition coupled with organic growth in the markets we serve throughout Southern California," Chief Executive Scott Andrews said in a news release Tuesday.
Pacific Commerce has two branches in Los Angeles and plans to open a third branch in San Diego, Andrews said. The bank named Andrews CEO in June 2012.