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Belltown’s Seattle Bank continues its financial resurgence

imageb5da4bThe Federal Deposit Insurance Corp. (FDIC) has lifted a consent order with Seattle Bank, another major step forward for the 69-year-old institution as one of Seattle’s leading locally owned banks.

One of Seattle Bank’s five locations is in Belltown, at 2827 Second Ave.

The consent order, issued by the FDIC in July 2009, was connected to practices in the bank’s mortgage division, as well as losses associated with the economic downturn, when the bank had different owners and different management.  The bank subsequently was sold to and recapitalized by a new ownership group, which invested $62 million in 2011.

The removal of the consent order is a testament to the effort of Seattle Bank employees to meet the FDIC’s requirements, including raising capital, reducing the level of non-performing assets and bringing the bank back to profitability.

After a number of years of losses, Seattle Bank has been profitable since the fourth quarter of 2012.

“The lifting of the order validates the bank’s positive direction and our plans for future growth,” said Patrick F. Patrick, president and chief executive officer of Seattle Bank.

Just in the past few weeks, the bank raised an additional $10 million in capital from new and current investors, bringing the total raised since 2011 to $72 million. This contributes to Seattle Bank becoming one of the most well capitalized banks in the state.

The recapitalization that started two years ago was led by Seattle merchant banking firm Delafield Hambrecht.  More than 60 individuals, almost all of them from the Seattle area, have also invested in Seattle Bank.

“Our mission is to serve residents of the Puget Sound Region with their total banking needs,” Patrick said.  “We can best accomplish that by ensuring we are locally owned and controlled, by and for the Seattle community.”

Seattle Bank’s total assets are $250 million, with $46 million of capital on hand.