United Western signs MOU with OTS

DENVER – United Western Bancorp Inc. (Nasdaq: UWBK) and its subsidiary United Western Bank entered into memorandums of understanding with the Office of Thrift Supervision.

United Western has 10 branches along the Front Range, including one each in Fort Collins and Loveland. Per the informal agreement, United Western must increase its total risk-based capital ratio.

In a statement announcing the agreements, the firm indicated that it would be able to achieve the new target ratios through the execution of its 2010 business plan, which includes converting the entire balance sheet to community banking. United Western Bancorp also operates a trust subsidiary and an investment subsidiary.

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“We intend to work diligently and expeditiously to conclude these informal agreements,´ said CEO Scot Wetzel in a prepared statement. “We have a good and constructive working relationship with the OTS. While we would have preferred to memorialize the additional interim terms of our regulation in the form of board resolutions given our recent significant capital raise, we understand the rationale for the use of the informal agreements at the bank and company.”

The company closed an $80 million stock offering in September, followed by an additional $7.8 million issuance in October. In addition to maintaining new capital levels, the agreement requires the company receive regulatory consent prior to paying dividends, making distributions, incurring additional debt or making payments on existing debt. The bank is also directed to adopt written plans to reduce specific asset concentrations.

At noon, United Western’s stock was trading down 8 percent at $2.50 per share.