NEWPORT BEACH, Calif. -- West Coast Bancorp said it has entered into a memorandum of understanding with the Federal Reserve Bank to improve its overall financial condition and to correct certain criticisms noted during the Fed's Sept. 30, 1991, examination.
Under the September memorandum, West Coast Bancorp said, it may not pay cash dividends without prior approval from the Fed.
West Coast Bancorp officials were not available for further comment on the agreement.
The company posted a third-quarter profit of $1,224,000, or 13 cents a share, compared with a year-ago loss of $1,087,000, or 12 cents a share.
The 1992 quarter includes a pre-tax recovery of $2,765,000, or 30 cents a share, by the Sunwest Bank subsidiary in settlement of a long-standing lawsuit against Lloyd's of London. The settlement decreased the provision for loan losses by $1.2 million, as a portion was treated as a recovery of a loan loss. The balance was recorded as noninterest income.
Nonperforming assets rose to 6.66% in the quarter.