Temecula Valley Bancorp Inc. said Wednesday that it has agreements with several regulators to improve the strength and stability of its banking unit.
The struggling $1.6 billion-asset company said an agreement with the Federal Reserve Bank of San Francisco requires it to get approval before adding executives or directors, reducing or incurring debt, paying dividends, or repurchasing stock. It also must submit a capital plan.
Temecula Valley Bank has consented to a cease-and-desist order from the Federal Deposit Insurance Corp. and the California Department of Financial Institutions.
Frank Basirico, the company's chief executive officer, said in a press release that the bank has begun working to comply with the requirements, which include assessing management, increasing board participation, diversifying the loan portfolio, and reducing brokered deposits and delinquent loans. The bank also must adopt plans to address issues with capital, profitability, and loan-loss allowances.