Old Second National (OSBC) in Aurora, Ill., has been released from a 2011 consent order issued by the Office of the Comptroller of the Currency.
The order, issued to the company's $1.9 billion-asset bank, was lifted on Oct. 17, according a regulatory filing.
Old Second was required to maintain a Tier 1 capital ratio of at least 8.75% and a total risk-based capital of at least 11.25%. The bank was also required to reduce credit risk, obtain independent appraisals on loans over $250,000 secured by real property, maintain proper collateral documentation on all loans and adhere to a liquidity risk management program.
With the lifting of the order, Old Secondl's board declared that the bank will now maintain a minimum Tier 1 leverage ratio of 8% and minimum total risk-based capital of 12%. The bank exceeds those thresholds, according to the regulatory filing. It reported a 10% Tier 1 leverage ratio and 16% total risk-based capital as of June 30.