The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

UniBank in Washington operating under Fed written agreement

U & I Financial in Lynwood, Wash., is operating under a written agreement with the Federal Reserve.

The Fed disclosed the enforcement action with UniBank earlier this week.

The agreement requires the bank to review and amend policies and practices tied to consumer compliance, lending administration and risk management, loan grading and review, credit loss allowances and conflicts of interest.

U & I Financial earlier this year restated its fourth-quarter results – leading to a big net loss – and suspended its dividend after issues surfaced in its equipment finance business. The company said it lost $18 million after increasing its loan-loss provision in that quarter from $3.1 million to $26.1 million.

The company said its issues were tied to a business where it finances borrowers’ purchase of equipment from manufacturers.

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