The Federal Deposit Insurance Corp. lifted a March 1994 cease-and-desist order against a Connecticut thrift.

Mechanics Savings Bank was slapped with the order for reasons including not enough capital, high nonperforming assets, and excessive rate exposure.

Edgar C. Gerwig, president and chief executive, said the thrift improved its financial health through a 1996 stock conversion to raise capital and a bulk asset sale that reduced nonperforming assets.

He said federal regulators had given the thrift until the end of 1996 to bring its capital ratio up to 6%.

- James B. Arndorfer and Joanna Sullivan

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