LYNNWOOD — Bank of Washington is the latest Snohomish County bank to be placed under increased state and federal oversight, agreeing to a list of stipulations meant to stop losses at increase capital.
The small community bank based in Lynnwood was one of 34 cease and desist orders the Federal Deposit Insurance Corp. issued in November, and one of four banks in Washington that received the censure that month.
Viking Bank of Seattle, Pierce Commercial Bank of Tacoma and American Marine Bank of Bainbridge Island are also subject to heightened government oversight. Nearly 30 banks in Washington, including Frontier Financial Corp. and Mountain Pacific Bank, are on regulators’ watch lists.
The consent order issued to Bank of Washington consists of several stipulations, including a mandate that bank officials notify regulatory officials of high-level management changes and a halt on making high-risk loans. The bank is also expected to outline a plan for reducing loans related to land acquisition, development, and construction.
Bank of Washington has branches in Everett, Edmonds, Lynnwood, Mukilteo, Issaquah and Redmond.
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