The Federal Deposit Insurance Corp. has lifted a cease-and-desist order against Twin City Bank after it raised fresh capital.
The Longview, Wash., bank had engaged in "unsafe or unsound banking practices" and had inadequate capital and loan valuation reserves, the August 2009 order had said. It required Twin City to retain qualified management and its directors to increase their participation in the $41 million-asset bank.
Twins City's core capital (leverage) ratio was 9.77% at June 30 of this year, the FDIC said. Its noncurrent loans were less than 1% of total loans, down from almost 3% at Sept. 30, 2009, according to the FDIC.
In 2010 and 2011, the bank raised $450,000 through a stock offering, the Puget Sound Business Journal reported Friday. It also cut interest expenses by almost 71% since Sept. 30, 2009, to $206,000 at June 30, according to the FDIC.
Regulators lifted the order in August but made the termination public on Friday.