Pacific West Bank in West Linn, Ore., has accepted a consent order with federal and state regulators requiring it to strengthen capital and address asset-quality deterioration, the bank has announced.

The order — issued March 31 by the Federal Deposit Insurance Corp. and the Oregon Division of Finance and Corporate Securities — was based on information as of last June 30. The bank said Friday that it had taken several steps since then to shore up its balance sheet.

Customer deposit balances nearly doubled during 2009, it said, and brokered deposits have been reduced more than 75%. The bank also trimmed its high concentrations of acquisition, development and construction loans — an area identified as needing improvement.

At Dec. 31, the $78.4 million-asset bank was well-capitalized, with a leverage ratio of 8.13%, a Tier 1 risk-based capital ratio of 10.22% and a total risk-based capital ratio of 11.48%. Pacific West said it would soon begin a capital-raising effort.

The order requires the bank to maintain higher capital ratios as a cushion against potential future losses.

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