The Federal Deposit Insurance Corp. has lifted a consent order with Seattle Bank, which recently added $10 million of capital.
Seattle Bank announced the termination of the 2009 consent order on Thursday. The order had required the $250 million-asset bank to raise capital, reduce loan losses and cut nonperforming loans. It had Tier 1 capital of 14.16% and total risk-based capital of 22.26%, as of June 30, according to the FDIC.
"The lifting of the order validates the bank's positive direction and our plans for future growth," Chief Executive Patrick Patrick said in a news release.
Seattle Bank said it raised the $10 million over the past several weeks, largely from local investors, bringing to $72 million the sum the bank has raised since 2011. The bank raised $62 million in a previous recapitalization, which was led by the Seattle merchant banking firm Delafield Hambrecht.
Patrick was brought on in 2010 to lead the bank's turnaround, and it has since reduced its nonperforming loans, shrunk its balance sheet and closed branches. It now has six locations in the Seattle area and Tacoma.