SPOKANE, Wash. (AP) — Regulators have lifted a cease-and-desist order placed on Sterling Savings Bank of Spokane nearly one year ago.
Sterling Financial Corp. said the move reflects the company’s improved balance sheet and progress to reduce the proportion of loans and other assets classified as nonperforming.
Sterling last month said it had arranged $730 million in new investment. That brought the bank back into compliance with capital requirements 10 months after huge losses on construction and real estate loans brought it to the brink of failing.
The Washington Department of Financial Institutions and Federal Deposit Insurance Corp. imposed a cease-and-desist order on the bank that forced out senior management and required $300 million in new capital to be raised.
