HCSB Financial in Loris, S.C., has been freed from a 2011 regulatory order.
The $381 million-asset company said its bank was no longer under a consent order with the Federal Deposit Insurance Corp. and the South Carolina State Board of Financial Institutions. Certain restrictions remain, including requirements tied to the leverage capital ratio, credit quality and earnings and a prohibition on paying dividends without regulatory approval.
The company also reported a $1.8 million net loss for the third quarter tied to asset dispositions and legal costs. Total loans increased from the second quarter but fell slightly from a year earlier. "The key focus areas for our team as we finish out 2016 are quality loan production, continued improvement in asset quality, and meaningful earnings per share," Jan Hollar, the company's chief executive, said in a press release.
Hollar was named HCSB's chief executive in March. A month later, the company completed a $45 million recapitalization led by the investment firm Castle Creek Capital Partners.