Saehan Bank, a wholly owned subsidiary of California-based Saehan Bancorp, has entered into a consent order with the Federal Deposit Insurance Corporation (FDIC) and the California State Department of Financial Institutions (DFI) effective as of December 7, 2009.
The agreement outlines specific remedial actions the FDIC and DFI want the bank to take to improve the soundness of the bank. These actions include retaining qualified management, eliminating the bank’s reliance on brokered deposits, refraining from engaging in any new lines of business or establishing any branches or other offices of the bank without the prior approval of the bank’s regulators.
The bank has said that the consent order does not impact the ability of the bank to transaction business with banking customers. Saehan Bank will continue to serve customers in all areas including providing access to lines of credit, paying competitive rates on deposits, and processing banking transactions. All customer deposits are fully insured to the highest limits set by the FDIC, which are $250,000 for individually titled accounts and $250,000 for individually titled IRA accounts.
Chung Hoon Youk, president and CEO of Saehan Bank, said: “Saehan Bank will work closely with the FDIC and DFI to attain full compliance with the agreement as quickly as possible. We have a number of capital raising options available to the bank and we are weighing these options while proceeding with efforts to raise capital through private sources in the US and in South Korea.
“We take the entry of this order seriously and are committing the necessary resources to this effort in order to achieve full compliance as quickly as possible and no component of this order places any restrictions on our ability to continue to provide exceptional service to our customers. Our board, management and staff are making every effort to successfully meet the directives set forth in the consent order.
