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Another local bank's got problems

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Coast National Bank, a San Luis Obispo bank with four branches and a loan office, is in a bit of a pickle. Federal bank regulators want the institution to “improve its asset quality and create specific plans for the maintenance of adequate capital.” In other words, it needs to get its hands on some more money. The bank has entered into a consent order with the Office of the Comptroller to raise more money for its financial reserve.

Regulators want the bank to improve how it manages its loans and lower the amount of risk it has on its books.

The bank’s leaders blame the sorry state of the economy for what they call their financial challenges. The bank listed about a $4.6 million net loss at the end of 2010, and a net loss of about $4.9 million at the end of 2009.

“This is a formal regulatory agreement that we take very seriously, and we are committed to bringing the bank into compliance as soon as possible,” Chairman of the Bank Jack Wauchope said in a press release. “We have been giving our highest attention to improving the financial performance and safety and soundness of the bank.”

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