The Office of the Comptroller of Currency has terminated a written agreement with Coastal Banking (CBCO) in Beaufort, S.C.
The OCC in August 2009 ordered the $405 million-asset company to lower its credit risk, reduce its level of criticized assets and implement a profit plan with limited reliance on brokered deposits. The agency lifted the enforcement action Thursday, Coastal Banking announced on Monday.
"We are proud of our efforts to restore the bank to health and financial stability, which included diligently working down problem assets and generating substantial levels of noninterest income from mortgage banking and small-business lending," Chief Executive Michael G. Sanchez said in a press release. "We earned our way back to health rather than having to seek out additional dilutive capital as so many other banks were forced to do in order to survive. This was the best possible outcome for our shareholders, our customers and our employees."
Coastal Banking has a Tier 1 leverage ratio of 10.5% and total risk-based capital of 23.2%.