The Federal Deposit Insurance Corp. and the California Department of Financial Institutions lifted a cease and desist order for Plaza Bank in June in a move that was made public late last month.
The order was issued in early 2009 to shore up the bank’s reserves and stem problem loans.
Specifically it called for the Irvine bank to strengthen its management, board, and cash reserves, while reducing the number of poor quality loans and other measures.
The lifting of the order cleared the way for Plaza Bank to take over the sole branch of SouthwestUSA Bank in Las Vegas after it was closed by federal regulators last month.
The branch recently opened under the Plaza Bank name in the bank’s first foray outside the county.
As of March 31, SouthwestUSA Bank had $214 million in assets and $186.7 million in deposits.
Plaza Bank assumed all of the deposits of the failed bank and purchased $137 million of its assets.
—Chris Casacchia
