The Office of the Comptroller of the Currency has ended a formal agreement with City National Bank of Florida.
The agreement from April 2010 required the $4 billion-asset, Miami-based bank to reduce its level of credit risk, ensure its assets were diversified and review the adequacy of its allowance for loan and lease losses. It also had to develop policies to ensure compliance with the Bank Secrecy Act.
City National also had to adopt a strategic plan that established objectives for its risk profile, earnings performance, growth, balance-sheet mix and capital adequacy.
In January, the company reported 2011 profit of $34.4 million, compared with a $436.7 million loss in 2010. Illustrating its turnaround, City National closed more than $759 million in new loan commitments.
"We are well positioned for sustained growth as our diversification strategy continues to pay dividends," City National President and Chief Executive Jorge Gonzalez said in a news release at the end of February.
The bank was purchased by Caja Madrid of Spain in April 2008 and received a $100 million capital injection in 2010 from its parent.