CFBank in Fairlawn, Ohio, has been released from a cease-and-desist order issued by the Office of the Comptroller of the Currency.
The order against the $245 million-asset CFBank was issued in May 2011, the bank said Friday in a news release. It required the bank to maintain a minimum 8% Tier 1 leverage ratio and 12% risk-based capital ratio, according to a regulatory filing.
CFBank and its holding company, Central Federal (CFBK), conducted a $22.5 million capital raise and recapitalization in 2012, according to the filing. The holding company then contributed $13.5 million to the bank to boost its capital ratios. CFBank had an 8.88% Tier 1 leverage ratio and a 13.2% total risk-based capital ratio as of Sept. 30, the filing says.
"The lifting of the CFBank order reflects the improved capital position of CFBank," Chief Executive Timothy O'Dell said in the release. "We have established a very good working relationship with the OCC and will continue to work closely with them as we ... enhance our performance going forward, and reposition CFBank into a ... business bank focused on serving closely held businesses and the entrepreneurs that own them."
Central Federal also announced Friday plans to expand into the Cleveland area with the opening of a new branch this week. The company currently has four branches in three Ohio counties, according to the Federal Deposit Insurance Corp.