Federal Deposit
Insurance Corporation

{{7-31-95 p.C-3811}}
   [¶11,074] In The Matter of Pacific Thrift and Loan Company, Woodland Hills, California, Docket No. FDIC-94-157b (10-13-94).

   Bank to cease and desist from such unsafe or unsound practices as operating in such a manner as to produce low earnings. (This order was terminated by order of the FDIC dated 5-30-95. See ¶16,009.)

   [.1] Bank Offices—New Openings Restricted
   [.2] Profit Plan—Minimum Requirements
   [.3] Out-of-State Office—Report on Profitability

In The Matter of
Q
PACIFIC THRIFT AND LOAN
COMPANY
WOODLAND HILLS, CALIFORNIA
(Insured State Nonmember Institution)
ORDER TO CEASE AND DESIST
FDIC-94-157b
   Pacific Thrift and Loan Company, Woodland Hills, California ("Insured Institution"), having been advised of its right to a Notice of Charges and of Hearing detailing the unsafe or unsound banking practices alleged to have been committed by the Insured Institution and of its right to a hearing on the alleged charges under section 8(b)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b)(1), and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT") with counsel for the Federal Deposit Insurance Corporation ("FDIC"), dated September 27, 1994, whereby solely for the purpose of this proceeding and without admitting or deny- {{12-31-94 p.C-3812}}ing the alleged charges of unsafe or unsound banking practices, and Insured Institution consented to the issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC.
   The FDIC considered the matter and determined that it had reason to believe that the Insured Institution had engaged in unsafe or unsound banking practices. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

   IT IS HEREBY ORDERED, that the Insured Institution, its institution-affiliated parties, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns cease and desist from the following unsafe and unsound banking practice:
   (a) operating in such a manner as to produce low earnings.
   IT IS FURTHER ORDERED, that the Insured Institution, its institution-affiliated parties, and its successors and assigns, take affirmative action as follows:

   [.1] 1. As of the effective date of this ORDER, the Insured Institution shall refrain from opening any additional offices, including loan production offices without the prior written approval of the Regional Director of the FDIC's San Francisco Regional Office ("Regional Director").

   [.2] 2. Within 60 days from the effective date of this ORDER, the Insured Institution shall formulate and implement a written profit plan. This plan shall be forwarded to the Regional Director and to the Commissioner for review and comment and shall address, at a minimum, goals and strategies for improving and sustaining the earnings of the Insured Institution, including:

   a. an identification of the major areas in, and means by which, the board of directors will seek to improve the Insured Institution's operating performance;
   b. realistic and comprehensive budgets;
   c. a budget review process to monitor the income and expenses of the Insured Institution to compare actual figures with budgetary projections; and
   d. a description of the operating assumptions that form the basis for, and adequately support, major projected income and expense components.