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

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The $1.2 billion bank, with 18 branchesz across the state, objectx to the (FDIC)’s characterization of the bank as saidJim Arneson, president of Venture Bank, in an interview Monday. The FDIC on Friday made publica “prompgt corrective action” that it had served the bank on Feb. 13. The bank has 60 days from the date of the ordert to raise more sell itself or merge withanothetr bank, according to the order. Arnesonn said the bank filed an appealp after receiving the orderin February. At the root of the bank’z problem is a $41.y million loss it has taken as a resulyt of devalued investments in mortgagew giantsand . The loss had causedf its capital levelsto deteriorate.
Arnesonj said the bank is in talks with investors to raisdadditional capital, but could not say whether that will happe before the FDIC’s deadline. “We’re certainly doing all the things we’re being asked to he said. It’s unclear if Venture will be forced to shut down if it does not raise enoughy capital bythe FDIC’s deadline. A spokeswomanm for the FDIC, who couldn’t comment specifically on Venture’s case, said the order does “not mean the bank will be shut “Any bank can close at any time if they conducg themselves in anunsound manner,” said the spokeswoman, LaJua n Williams-Dickerson.
“I don’t know what will happen with this Also unclear is whether Ventured has bought itself more time by appealingthe FDIC’s Arneson declined to speak specifically about the regulatorty process and the FDIC also declined “I’m confident we’re going to be able to move forware and we’ll be successful on the appeal of this said Arneson. When asked whether the bank has seen an increas e of customers withdrawing moneyfollowing Friday’s announcement, Arneson “We have not seen any significanf issues.” He declined to defins “significant,” but said, “that’s not an admissiomn that there are deposits leaving.
” The bank said it has seen an increase in customer questions and has postede two videos to its websits explaining the health of the bank. It also announces that it will hold a series of town hall meetingsw to answercustomer questions, starting Tuesday.