Seattle Bank has signed an agreement with the Federal Deposit Insurance Corporation (FDIC) and the Washington State Department of Financial Institutions (DFI).
Seattle Financial Group, the holding company for Seattle Bank, has also signed a similar agreement with its regulator, the Office of Thrift Supervision. The bank has reported that this regulatory agreement does not impact depositors.
Ellen Sas, President and CEO, said: “Like many other financial institutions, Seattle Bank has been adversely affected by the current economic recession, particularly because of its focus on residential construction lending and real estate development. This agreement provides for a reduction of problem loans and higher capital levels and formalizes most of the changes management already has in place to ensure prudent financial management in this economy.”
She added that this agreement is part of a regulatory process many financial institutions are undergoing as the banking industry works to address the economic fallout of this recession.
Seattle Bank is FDIC-insured, and deposits are fully insured up to the FDIC limits of $250,000 per depositor through 2013.
