FDIC and State Regulators Lift Cease-and-Desist Order Against Everett Bank

In a news release this afternoon, Everett-based Mountain Pacific Bank announced that the Federal Deposit Insurance Corporation (FDIC) and the State of Washington Department of Financial Institutions (DFI) have terminated their Cease and Desist Order with the Bank dated March 5, 2009. Here’s the release as provided by Mountain Pacific Bank…

Mountain Pacific Bank is the first local community bank in Snohomish County to have an order of this type lifted while retaining both local ownership and management. To date, most banks released from Consent or Cease and Desist Orders have been due to FDIC closures, acquisitions by other institutions, or by loss of local ownership to out of area investors. President and CEO Mark Duffy said, “We’re a better bank today for having gone through this process, but it was not an easy path. We could not have accomplished this without our loyal customers, talented employees, supportive investors and a fully engaged Board of Directors. We were successful in ‘keeping it local’ by working through our issues and raising new capital from local investors.”

Mountain Pacific Bank had met all of the requirements of the Regulatory Order prior to its most recent examination by regulators. Those included improving the quality of the banks’ loan portfolio and raising key capital ratios. Over the past two years, the Bank reduced problem assets by $15.9 Million, while successfully raising more than $10.5 Million in new capital from local investors.

The banking landscape in Snohomish County has changed dramatically over the past three years. From 2008 to 2011, the total number of banks operating branches in Snohomish County declined from 32 to 27. Eight of those banks operating branches in Snohomish County failed. Almost half of the thirteen local community banks headquartered in Snohomish County in 2008 no longer exist – Four of those banks failed, while two others were acquired by out of area banks.

Chairman of the Board, Rick Pedack commented, “Local community banks provide the fuel for economic growth in communities like ours and it’s been devastating for the people and businesses of Snohomish County to have lost so many local banks. We’re in this for the long-term and I’m proud that our success has helped preserve local community banking in Snohomish County. Now that we’re back on track, Mountain Pacific Bank is ready to grow into the void of locally owned, locally managed banks in this area.”