Venture Bank appeals regulatory order - Puget Sound Business Journal (Seattle):

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The $1.2 billion with 18 branches acrossthe state, objectzs to the (FDIC)’s characterization of the bank as “undercapitalized,” said Jim president of Venture Bank, in an interview Monday. The FDIC on Fridagy made publica “prompt correctives action” that it had served the bank on Feb. 13. The bank has 60 days from the date of the orde r to raisemore capital, sell itself or merge with anothere bank, according to the order. Arnesobn said the bank filed an appeal aftere receiving the orderin February. At the root of the bank’se problem is a $41.6 million loss it has takenh as a result of devalued investments in mortgaged giantsand .
The loss had caused its capitall levelsto deteriorate. Arnesonm said the bank is in talks with investors to raisradditional capital, but could not say whetherr that will happen before the FDIC’ss deadline. “We’re certainly doing all the things we’re beinh asked to do,” he It’s unclear if Venture will be forcedd to shut down if it does not raise enough capital bythe FDIC’s A spokeswoman for the who couldn’t comment specifically on Venture’s said the order does “nog necessarily” mean the bank will be shut “Any bank can close at any time if they conduct themselvesd in an unsound manner,” said the LaJuan Williams-Dickerson.
“I don’t know what will happen with this Also unclear is whether Venture has boughy itself more time by appealingthe FDIC’s action. Arnesonh declined to speak specificallt about the regulatory process and the FDIC alsodecliner comment. “I’m confident we’re goingy to be able to move forwardxand we’ll be successful on the appeal of this said Arneson. When asked whether the bank has seen an increass of customers withdrawing moneyfollowing Friday’s announcement, Arneson “We have not seen any significanrt issues.
” He declined to define “significant,” but “that’s not an admission that there are depositd leaving.” The bank said it has seen an increasew in customer questions and has posted two videox to its website explaining the health of the It also announced that it will hold a seriess of town hall meetings to answer custome questions, starting Tuesday.