Printer Friendly

OCC CLOSES THE FIRST WESTERN BANK, NATIONAL ASSOCIATION, SAN DIEGO, CALIFORNIA, APPOINTS FDIC AS RECEIVER

 WASHINGTON, April 15 /PRNewswire/ -- At 7:30 p.m. (EDT) today, the Office of the Comptroller of the Currency (OCC), closed the First Western Bank, National Association, San Diego, California and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
 The FDIC Improvement Act of 1991 gives the OCC authority to appoint the FDIC receiver for national banks that meet specific criteria. The OCC used this authority when if found that First Western Bank, N.A. was critically undercapitalized -- that is, it had less than 2 percent tangible equity capital. The OCC also found that the bank was undercapitalized and had no reasonable prospects for becoming adequately capitalized. In light of these findings, the OCC determined that the appointment of the FDIC as receiver was necessary to protect the interests of the bank's insured depositors.
 The bank became a matter of concern to the OCC during 1989 and entered into a formal agreement with the OCC in November 1991. deterioration of the bank's condition continued. The bank suffered from poor loan underwriting and loan administration practices. Repayment programs were not enforced and proper loan documentation was not maintained and evaluated. Deterioration in the local economy resulted in many of these loans becoming losses for the bank. In October 1992 the bank entered into a consent order with the OCC that required the directors and management to take actions to correct the bank's problems. The bank never fully complied with that order.
 First Western Bank, N.A. received a national bank charter on Aug. 29, 1983. On Dec. 31, 1992 it had total assets of approximately $16 million.
 Information about the FDIC's resolution of the bank will be released later by the FDIC.
 -0- 4/15/93
 /CONTACT: Frank Vance, Jr. of the OCC, 202-874-4700/


CO: Office of the Comptroller of the Currency ST: District of Columbia IN: FIN SU:

LD -- NY124 -- 6550 04/15/93 20:10 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 15, 1993
Words:318
Previous Article:MTA CEO WHITE NAMES FOUR INTERIM EXECUTIVES; APPOINTS THREE OTHERS TO SERVE IN CEO'S OFFICE
Next Article:MAINTENANCE WORK UNDERWAY AT THE ESCAMBIA TREATING COMPANY SITE IN PENSACOLA, FLA.
Topics:


Related Articles
PLANTERS NATIONAL BANK OF ROSEBUD PLACED UNDER FDIC RECEIVERSHIP
OFFICE OF THE COMPTROLLER OF THE CURRENCY PLACES UNITED BANK, N.A., IN RECEIVERSHIP
OCC PLACES AMERICAN COMMERCE NATIONAL BANK IN RECEIVERSHIP
OCC CLOSES CROWN NATIONAL BANK
OCC CLOSES PALOS VERDES NATIONAL BANK; APPOINTS FDIC AS RECEIVER
OFFICE OF THE COMPTROLLER OF THE CURRENCY CLOSES EAGLE BANK OF CHAMPAIGN COUNTY, NATIONAL ASSOCIATION, RANTOUL, ILL; FDIC APPOINTED RECEIVER
PROPOSED ACTION.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters