The Federal Reserve Bank of Philadelphia has lifted a cease-and-desist order for Carver Bancorp of New York that was issued in February 2011.
Carver Bancorp chief executive and president Michael Pugh said in an Oct. 1 news release that the lifting of the order represented a milestone in the company's efforts to become stronger financially. The move follows the lifting of a similar C&D order for the company's subsidiary, Carver Federal Savings Bank, last November.
"We are pleased to put this chapter in our organization's history behind us, and we are extremely thankful for the ongoing commitment of our stockholders, customers, and community partners," Pugh said in the release.
As of June 30, the company maintained a Tier 1 capital ratio of 10.41% and a total risk-based capital ratio of 16.34% and its nonperforming loan ratios have been improving.
The now-defunct Office of Thrift Supervision initially put the C&D order in place. The order came when the bank began to feel the ill effects of the housing downturn and the recession. At the time, the OTS ordered Carver to boost its Tier 1 capital ratio to 9% and total risk-based capital to 13% — they stood at 6.43% and 10.75% respectively before the order.
Carver is one of the largest minority-owned banks in the country. In 2011, when it initially fell on hard times, the lender received an influx of $55 million in capital in 2011 from big New York players like Goldman Sachs and Morgan Stanley. Its former CEO Deborah Wright stepped down in the end of 2014 after having led the bank since 1999.