RiverBank, a six-year-old boutique institution here, has reported a net loss of $686,000 for 2011, but that was down dramatically from a $2.8 million loss the year before, and CEO Chuck Brooks says, "We're quite confident for 2012."

The bank ended last year with total loans of $111.2 million, down from $115.1 million a year earlier, and total deposits of $123.9 million, down from $127.2 million, according to documents it filed with federal regulators. It ended last year with total assets of $139.1 million, up from $138.3 million at the end of 2010.

Brooks says the bank is in compliance with all terms of a consent order it entered into last August with the Federal Deposit Insurance Corp. and the Washington state Department of Financial Institutions that placed it under tighter regulatory scrutiny.

The order required RiverBank to hire and retain qualified managers, notify regulators when it planned to add or replace board members or senior executive officers, and increase the board's participation in the affairs of the bank. It also required the bank to increase its capital, keep a fully funded allowance for loan and lease losses, reduce troubled assets, and develop a financial plan that set specific goals in a number of key areas. It set deadlines ranging from 30 days to 180 days to implement or complete various conditions outlined in the document.

In line with those requirements, RiverBank posted net charge-offs of $4.2 million for 2011, up sharply from $1.6 million in 2010. Also, among other key benchmarks, it had increased its total risk-based capital ratio to 14.6 percent from 10.14 percent, as of the latest figures reported to regulators, exceeding the 12 percent minimum it had been required to meet within 120 days.

The bank has strong core earnings and retains a loyal customer base, but continues to be challenged by some assets that have been impacted by the soft economy, Brooks says.

Of the consent order, he says, "We'd like to have it lifted tomorrow." Regulators, though, want to see performance and "a more robust loan portfolio," so it's unclear how long the tighter federal and state scrutiny of the bank will continue, he says.

"The bank has good liquidity, but liquidity is something that is very prevalent in our industry right now," so strengthening that loan portfolio is a challenge, Brooks says.

Nevertheless, he adds, "I'm excited for the prospects of the bank."

Brooks, who's experienced in leading troubled institutions working to regain regulatory compliance, joined RiverBank last year, succeeding Duane Brandenburg, one of the bank's founders, who retired.

The bank announced late last year that it had raised $5 million through the sale of common stock.

RiverBank is a single-location niche bank that offers personalized services, mostly to small-business and commercial clients in the Spokane area. It occupies space on the top two floors of a five-story building at 203 E. Spokane Falls Boulevard, plus has a ground-floor branch there. It also occupies a 3,800-square-foot building just west of there.