In late February, First Heritage Bank received a Prompt Corrective Action (PCA) Directive from the FDIC requiring recapitalization or sale of the Bank within 30 days.
“The Bank anticipates progress toward a successful resolution of the directive. We are in active discussions with a number of merger partners to satisfy the PCA letter. We are fortunate to have a strong deposit franchise, an award-winning SBA loan department, and a solid branch network in Snohomish and northern King Counties.” Reines further commented that, “Deadlines can be and have been extended on a case-by-case basis.”
A notable example in our state was AmericanWest Bank in Spokane, which received a PCA directive in February 2010, and was successfully recapitalized 10 months later.
While the PCA Directive is intended to cause the bank to bolster its capital position, there is no risk to depositor’s funds that are within deposit insurance limits.
“We want our customers to understand that this will not affect the safety of their deposits or our commitment to their banking relationships with First Heritage Bank. Any questions may be directed to me at the Bank,” stated CEO Reines.