The Office of the Comptroller of the Currency has terminated a written agreement with Intervest National Bank in New York.
The December 2010 agreement obligated the $1.7 billion-asset unit of Intervest Bancshares (IBCA) to maintain certain capital ratios. It also barred the company from paying dividends or distributing capital without regulatory approval. The bank had a Tier 1 leverage ratio of 14.4% and a Tier 1 risk-based capital ratio of 19.8% at Dec. 31, according to the Federal Deposit Insurance Corp.
The bank had also agreed to provide written plans for improving the condition of its loan portfolio and for working out loans that examiners had flagged as troubled, among other things. The agreement also obligated Intervest's board to identify problem loans and leases and to detail policies for managing concentrations of credit. Intervest also had to form a committee to monitor compliance with the agreement.
Intervest, which had also been subject to a January 2011 agreement with the Federal Reserve Board that obligated the company's board to serve as a source of strength to the bank, said in a press release Monday that it is no longer subject to any formal or informal regulatory agreements. "The actions taken and policies adopted to achieve compliance have become part of the Bank's core principles and will not be diminished," Lowell Dansker, the company's chairman and chief executive, said in the release.