Wilshire Bancorp Inc. has announced that the Federal Reserve Bank of San Francisco has lifted an informal enforcement action on the Koreatown bank holding company.
Wilshire took heavy losses in 2010 and early 2011 as a result of bad loans made by its Wilshire State Bank subsidiary, prompting scrutiny by regulators. The informal enforcement action, a memorandum of understanding, was issued in June 2011.
“We are pleased that the FRB has recognized the improvement in our overall condition and determined that the MOU is no longer warranted,” Wilshire Chief Executive Jae Whan Yoo said in a statement on Thursday.
The announcement comes after a series of steps Wilshire has taken to turn around the bank since it replaced several top executives in early 2011. It announced earlier this year that it had exited the Troubled Asset Relief Program and resolved a memorandum of understanding with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions.