The bank said that the capital levels remained strong with the Tier 1 Leverage Capital, and the Total Risk Based Capital ratios at 9.09% and 14.81%, respectively.
Santa Clara Valley Bank president and CEO Michael Hause said the bank generated a quarterly profit as a result of SCVBank’s improving net interest margin, tight controls on expenses, and improving trends in the bank’s loan portfolio, in spite of the continuing recessionary environment.
In conjunction, the bank has entered into a formal consent order with its primary regulator, the Office of the Comptroller of the Currency (OCC), to adopt an action program designed to further enhance the strength and stability of the bank’s operations.
Hause said this consent order is based upon an examination reviewing the bank’s 2009 performance. Over the past year the bank has made significant progress in aggressively addressing many of the areas outlined in the order, including real estate-related issues within our portfolio.
"As a result, many of the prudent actions recommended by the OCC have already been completed, while others will be completed shortly. Nonetheless, we will continue working in close consultation with our regulators and executing on our strategic plan to help ensure the long-term strength and performance of Santa Clara Valley Bank," Hause said.
As part of the order, the bank consented to specific steps that it will undertake to further enhance the bank’s performance. These affirmative actions include developing and implementing a plan to maintain strong capital levels, to improve internal controls on the loan portfolio, and revising and expanding the bank’s long-term business plan and budget.
