Naugatuck Valley Financial in Naugatuck, Conn., has been freed from a regulatory order.
The $497 million-asset company said in a press release Tuesday that its bank has been released from a formal agreement with the Office of the Comptroller of the Currency.
The OCC said in a letter that it will no longer require the bank to meet individual minimum capital requirements beyond standard regulatory capital requirements. At 31, the bank had a Tier 1 leverage ratio of 11.18% and a total risk-based capital ratio of 17.64%. The bank had been required to have a 9% Tier 1 ratio and a 13% total risk-based capital ratio.
"With the termination of this enforcement agreement, the bank can devote its full efforts toward the bank's mission of delivering superior service to our customers and build value for our shareholders while supporting the communities we serve," William Calderara, Naugatuck Valley's president and chief executive, said in the release. "However, the risk management principles which brought the bank into compliance with the formal agreement will continue to be a core part of our culture and operations."
The company entered into the OCC agreement in January 2012 after facing mounting credit problems. The Federal Reserve Board then hit the company with a memorandum of understanding in May 2013. The company would later shed more than $25 million of impaired loans to improve its credit situation.