LYNNWOOD, Wash. - City Bank of Lynnwood is facing an ultimatum from federal regulators to raise new capital or sell itself to another bank.
The Seattle Times reports that the bank was hard hit by the collapse of the real-estate bubble, and that on Tuesday it said it lost nearly $120 million last year -- even more than first reported.
It also disclosed that the Federal Deposit Insurance Corp. gave it until April 10 to either raise new capital or sell itself to another bank.
Such orders are considered the highest level of regulatory oversight of problem banks. Should a bank fail to either recapitalize or find a buyer it is liable to be taken over by regulators.
Four Washington-based banks have been closed so far this year.
City Bank has eight branches in Snohomish and King counties.
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