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Asiana Bank

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Asiana Bank
Sunnyvale, California
Application for Federal Deposit Insurance (Bank Insurance Fund)

The undersigned, acting under delegated authority, has fully considered all available facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act and relating to the application for federal deposit insurance, with membership in the Bank Insurance Fund, for Asiana Bank, Sunnyvale, Santa Clara County, California, (bank) a proposed new State nonmember bank to be located at 1082 East El Camino Real, Sunnyvale, California and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, that the application submitted by Asiana Bank, Sunnyvale, Santa Clara County, California, for federal deposit insurance be and the same hereby is approved subject to the following conditions.

1. That beginning paid in capital funds of not less than $6,000,000 be provided, and that a ratio of Tier 1 Capital to total assets of not less than eight percent shall be maintained during the first three years of operation;

2. That any changes in proposed management or proposed ownership (10 percent or more of stock), including new acquisitions of or subscriptions to 10 percent or more of the stock, will render this commitment null and void unless such proposal is approved by the Federal Deposit Insurance Corporation (FDIC) prior to opening of the bank;

3. That an accrual accounting system be adopted for maintaining the bank's books;

4. That the bank obtain an audit of its financial statements by an independent public accountant annually for at least the first three years after deposit insurance is effective, furnish a copy of any reports by the independent auditor (including any management letters) to the San Francisco Regional Office within 15 days after their receipt by the bank, and notify the Regional Office within 15 days when a change in its independent auditor occurs;

5. That adequate fidelity bond coverage be obtained prior to opening the bank;

6. That federal deposit insurance shall not become effective unless and until the applicant has been established as a State nonmember bank, that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the State authority;

7. That, prior to opening for business, the bank will have a program to assure that its electronic information systems are able to correctly perform all automated processing operations, including interactions and interdependencies with other automated systems, involving dates later than December 31, 1999, consistent with the standards and guidance provided by the Federal Financial Institutions Examination Council;

8. That until the bank is established, the Corporation shall have the right to alter, suspend, or withdraw the said commitment should any interim development be deemed to warrant such action; and,

9. That if deposit insurance has not become effective within twelve months from the date of this ORDER, or unless, in the meantime, a request for an extension of time has been approved by the Corporation, the consent granted shall expire at the end of the said twelve month period.

Dated at Washington, D. C., this day of January 1999.

By:___________________________
Mark S. Schmidt
Associate Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Asiana Bank
Sunnyvale, Santa Clara County, California
Application for Federal Deposit Insurance (Bank Insurance Fund)

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for federal deposit insurance has been filed on behalf of the Asiana Bank, Sunnyvale, Santa Clara County, California, (bank) a proposed new state nonmember bank to be located at 1082 East El Camino Real, Sunnyvale, California.

The bank will offer full service, community oriented banking in its primary service area, being Santa Clara County, California. A review of the information submitted by the applicant relating to the convenience and needs statutory factor revealed no inconsistencies with the purposes of the Community Reinvestment Act.

Initial capitalization is adequate, and acceptable deposit growth and operating profits within a reasonable period of time are projected. Proposed management is acceptable and approval of the proposal would not create an undue risk to the Bank Insurance Fund.

Accordingly, based on a careful evaluation of all available relevant facts and information, the Associate Director, acting under delegated authority, has concluded that approval of the application is warranted subject to conditions listed in the Order.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION



Last Updated 03/24/2011 Legal@fdic.gov