RiverBank makes changes
Regulators tell institution to raise capital, improve banking practices
Spokane-based RiverBank has undergone a management shake-up and business reforms as federal regulators insist the bank raise capital and undertake “safe and sound” banking practices.
The bank, started in 2006, is now run by Chief Executive Officer Clyde “Chuck” Brooks.
The bank’s board also announced that John W. Roewe has been hired as senior vice president and credit administrator.
Brooks has replaced Duane Brandenburg, a founder of RiverBank. Brandenburg left the bank in April.
The bank acknowledged for the first time Thursday that it had entered into a regulatory agreement with the Federal Deposit Insurance Corp. and Washington state Department of Financial Institutions.
Brooks said Thursday that the bank is working through problems associated with a “single relationship.” He declined to name that borrower.
The bank, he said, will work through issues within its lending portfolio and is already emerging as a solid community lender “with a bright future.”
“I believe in this bank,” he said. “We do have some challenges, but we’re already working through them and the agreement we entered into reflects this.”
The agreement with the FDIC and DFI, signed in late April, also requires RiverBank to retain qualified managers; keep an adequately funded allowance for loan and lease losses; put in place plans to reduce problematic assets; reduce the risks associated with having a high concentration of certain kinds of loans; and develop a three-year strategic plan.
Richard Riccobono, director of DFI’s banking division, declined to talk about the specific challenges facing RiverBank.
He said agreements between regulators and banks are designed to help the banks restructure and avoid the sort of problems that led to the collapse of Bank of Whitman, the Colfax lender that recently failed. Whitman’s collapse closed 12 small branches in Eastern Washington. It was the first regionally based bank to fail since the financial crisis began in 2008.
Columbia Banking System of Tacoma took over eight other branches and purchased many of Whitman’s deposits and best assets.