UCBH Stock Hit by Report on Loan Losses

SAN FRANCISCO (TheStreet) -- UCBH Holdings (UCBH Quote) shares were falling Tuesday after the company reshuffled its executive ranks following an independent report that found it deliberately masked loan data and reached an agreement with regulators.

The holding company, whose main subsidiary is United Commercial Bank, said that chairman and CEO Thomas Wu has resigned from the company and from the board of directors, according to a release on Tuesday. Chief Operating Officer Ebrahim Shabudin, who was also the company's former chief credit officer, has also resigned. Chief Financial Officer Craig On has been asked to assume the role of deputy CFO, but will remain as CFO until a replacement is found, the company said.

Shares recently were falling 9.2% to $1.08.

Separately, director Joseph Vaez resigned from the board for personal reasons but will remain a strategic consultant to the company.

UCBH, which does business mainly with Chinese communities and American companies seeking business in China, also said it entered into an agreement with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions on Sept. 3 regarding a cease and desist order in which it consented to "enhance the strength and stability of the bank and its operations," the release said. The company expects to agree to a similar settlement with the Federal Reserve Bank of San Francisco by the end of the month, it said.

UCBH has "accelerated" its capital planning initiatives, among other things, which will include "a review of all capital raising and strategic alternatives to maximize shareholder value," it said.