Longview-based Cowlitz Bancorp, which operates Cowlitz Bank and Bay Bank, with a branch in Vancouver, lost $31.5 million last year, mainly due to low interest rates and high levels of delinquent loans.
The Seattle Times reported Wednesday that state and federal regulators have tightened their oversight over the bank’s operations and management.
A consent order, issued Jan. 27 by the FDIC and the state Department of Financial Institutions, requires the bank to increase capital levels, reduce the load of troubled loans on its books, vet executive hires with regulators and make other changes aimed at restoring the bank to financial health.
Cowlitz’s 2009 loss amounted to $6.14 per share, versus a loss of $8.1 million, or $1.60 per share, in 2008. The company charged off $23.1 million in bad loans last year.
