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

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The $1.2 billion bank, with 18 branches across the state, objectx to the (FDIC)’s characterization of the bank as saidJim Arneson, presidenrt of Venture Bank, in an interview Monday. The FDIC on Friday made publica “prompt corrective action” that it had servedf the bank on Feb. 13. The bank has 60 days from the date of the ordert to raisemore capital, sell itself or merg e with another bank, according to the order. Arnesom said the bank filed an appeal after receivinb the orderin February. At the root of the bank’x problem is a $41.6 million loss it has takenb as a result of devalued investments in mortgagr giantsand .
The loss had caused its capitap levelsto deteriorate. Arneson said the bank is in talks with investors to raiseadditional capital, but could not say whether that will happen before the FDIC’s deadline. “We’re certainlyt doing all the things we’re beinf asked to do,” he said. It’as unclear if Venture will be forced to shut down if it does not raiss enough capital bythe FDIC’w deadline.
A spokeswoman for the FDIC, who couldn’rt comment specifically on Venture’s case, said the orded does “not necessarily” mean the bank will be shut “Any bank can close at any time if they conduct themselvesa in anunsound manner,” said the spokeswoman, LaJuan “I don’t know what will happenh with this bank.” Also unclear is whether Venturee has bought itself more time by appealin g the FDIC’s action. Arneson declined to speamk specifically about the regulatory processx and the FDIC alsodeclined comment.
“I’n confident we’re going to be able to move forwarddand we’ll be successful on the appeal of this said Arneson. When asked whethefr the bank has seen an increass of customers withdrawing money following Friday’s announcement, Arneson “We have not seen any significant He declined to define “significant,” but “that’s not an admission that there are deposits leaving.” The bank said it has seen an increas in customer questions and has poster two videos to its websitre explaining the health of the bank. It also announcex that it will hold a series of town hall meetingxs to answercustomer questions, starting Tuesday.