(Source: MARKETWIRE)EvergreenBancorp, Inc. (OTCBB: EVGG) today announced that its wholly owned subsidiary, EvergreenBank, has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) and the Washington State Department of Financial Institutions (DFI) to adopt a program designed to stabilize and strengthen its operations. The Company also announced that it has entered into an agreement with the Federal Reserve Bank of San Francisco (FRB) intended to augment the Company's ability to act as a source of strength to the Bank.

"The entire management team continues to focus on addressing the areas of concern we have in common with those that have been raised by our regulators. We are addressing these specific areas as part of our ongoing efforts to improve our financial condition and operations," said Gerald O. Hatler, chief executive officer of EvergreenBancorp. "Many of the actions noted in these agreements have been completed. We will continue to work closely with our regulators to ensure that we meet the requirements of the agreements."

As part of the FDIC and DFI agreement, the Bank agreed to the issuance of a Consent Order which formally outlines specific areas the Bank agrees to address through the adoption and implementation of policies to improve the soundness of the Bank. These actions, many of which the Bank has already undertaken as part of its strategic plan, include increased Board participation, as evidenced by 28 Board meetings so far this year. Other actions include the implementation of plans to address capital, allowance for loan losses, reducing the level of classified and delinquent loans, and a reduction in the reliance on non-core funding sources. The Bank is required to attain a Tier 1 capital leverage ratio of 10% and a total risk-based capital ratio of 12% within 90 days. The bank is also required to obtain prior approval from the FDIC and the DFI of director and management changes and dividend payments.

The FRB agreement requires that the Company obtain FRB approval before paying dividends, taking dividends from the Bank, making payments on subordinated debt or trust preferred securities, incurring debt or purchasing/redeeming Company stock. It also requires the Company to submit a capital plan, cash-flow projections, and progress reports.