The Federal Reserve Board has lifted a written agreement with Tower Financial (TOFC) that required the Fort Wayne, Ind., company to improve its lending and credit administration.
The April 2010 agreement also required the $650 million-asset Tower to strengthen the board's oversight of management. Tower had to revise its methodology for setting allowances for loan and lease losses, develop plans to maintain sufficient capital and enhance management of liquidity risk.
At March 31, Tower Bank & Trust's core capital (leverage) ratio was 10.9%, and its total risk-based capital ratio was 15.59%, according to the Federal Deposit Insurance Corp.
The bank could not declare or pay dividends or repurchase stock without approval. The written agreement was terminated on Tuesday, the Fed said Thursday.