The Federal Reserve Bank of New York has terminated a regulatory agreement with Intervest Bancshares (IBCA), declaring that the New York City company has satisfied all the provisions of the pact.
In January 2011, the Fed prohibited Intervest from paying dividends or making distributions tied to subordinated debt and preferred securities without its approval.
The $1.5 billion-asset holding company for Intervest National Bank ended a similar written agreement with the Office of the Comptroller of the Currency a year ago.
The enforcement orders stemmed in part from losses the bank suffered in 2010 from soured real estate loans. Earnings were further eroded by dividend payments to the Treasury Department for its participation in the Troubled Asset Relief Program, the company said.
The bank and the holding company are now considered to be well-capitalized.
Through the end of last year, Intervest's leverage capital ratio, Tier 1 capital and total capital ratios were 15.23%, 19.65% and 20.91%, respectively, according to a 10-K filing with the Securities and Exchange Commission.
"The actions taken and policies adopted to achieve compliance have become part of our core principles and will not be diminished," said Lowell Dansker, chairman and chief executive officer of Intervest Bancshares.