Sonoma Valley Bank, a wholly owned subsidiary of US-based Sonoma Valley Bancorp, has entered into an agreement with its regulators to continue taking actions to strengthen its financial condition and operations.
The agreement commits Sonoma Valley Bank to increase and maintain a Tier 1 capital ratio of at least 10% and a total risk based capital ratio of at least 12% by August 15, 2010.
The agreement also requires Sonoma Valley Bank to take specific actions to improve the quality of the bank’s loan portfolio, including adoption of new policies and procedures to monitor risk in the loan portfolio, have and retain qualified management and prepare and submit quarterly progress reports while the Consent Order is in effect.
Sean Cutting, president and CEO of Sonoma Valley Bank, said: “Sonoma Valley Bank has been working closely with the FDIC and the California Department of Financial Institutions since January, 2010. On May 18th, we entered into a Consent Order with our regulators that formalizes steps which are already underway and that we and our regulators feel are necessary to maintain the bank’s financial health and its ability to provide high levels of service to our customers.”