Preferred Bank in Los Angeles has signed a consent agreement with regulators.

A research note from Sandler O'Neill & Partners LP last week said the $1.3 billion-asset company was required to increase capital levels, reduce problem assets, reduce exposure to construction and land loans and create a liquidity management plan.

By July 20, Preferred Bank will be required to improve its leverage ratio to 8.5%, its tangible common equity ratio to 8.5% and its total risk-based ratio to 10%. It has a second deadline of Sept. 17 to improve ratios further.

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