The banking unit of DCB Financial Corp. (DCBF) in Lewis Center, Ohio, has been released from two enforcement actions.
The $506 million-asset Delaware County Bank & Trust Company was freed from a consent order issued by the Federal Deposit Insurance Corp and a written agreement with the Ohio Division of Financial Institutions, according to a press release Thursday. Both agreements were issued on Oct. 27, 2010.
"The lifting of the regulatory agreements is a major milestone in the transformation of DCB into a high-performing community bank," DCB president and chief executive Ron Seiffert said in the release.
The regulatory actions required the bank to review management; maintain a minimum Tier 1 capital ratio of 9% and total risk-based capital of at least 13%; reduce losses and delinquent loans; develop plans to improve liquidity and profits; and refrain from extending credit to bank affiliates.
In the years since, the bank has completed a $13.2 million capital raise to satisfy the required capital ratios. It cut costs by shuttering a quarter of its branches and offering employees voluntary early retirement packages.
"For nearly three years, our board of directors, management and employees worked tirelessly to implement the corrective actions necessary to free the bank from this higher level of regulatory supervision," Seiffert said in the release. "We have enjoyed strong support from our customers, shareholders and the local community over the years, and that continuing support was vital to the bank's turnaround. As we now turn our attention to the execution of our strategic plan, I would like to express, on behalf of our board of directors and management, our appreciation to all who contributed to the significant accomplishments of the past three years."