The Federal Reserve Board has terminated a written agreement with MidSouth Bank after capital levels improved and noncurrent loans decreased at the Murfreesboro, Tenn., company.
The August 2010 agreement required the $239 million-asset MidSouth to submit written plans to strengthen board oversight of the bank and improve its credit risk management practices. MidSouth also had to charge off all classified assets and ensure that it had an adequate allowance for loan and lease losses.
The agreement required MidSouth to maintain sufficient capital and prevented the bank from declaring or paying dividends without approval.
At Dec. 31, the bank’s core capital leverage ratio was 11.15%, up 134 basis points from a year earlier, according to the Federal Deposit Insurance Corp. Its noncurrent loans declined 61 basis points, to 5.61%, from a year earlier, according to the FDIC.
The company reported that its net operating income for 2011 totaled $918,000, more than four times higher than a year earlier, according to the FDIC.
The Federal Reserve said Tuesday that the order was lifted last week.