The Office of Thrift Supervision has lifted its supervisory agreement with Palfed Inc., a $650-million thrift holding company in Aiken, S.C.
The agreement, implemented in March 1993, was terminated on Wednesday because Palfed reduced its nonperforming assets and other problem assets.
Nonperforming loans now stand at $20 million, or 3.08% of total assets, and total criticized assets amount to $41 million. When the bank first reported its problems back in late 1992, total criticized assets stood at more than $60 million.
Palfed has improved its condition in part through better earnings and an October 1993 rights offering that raised $20 million, according to thrift officials.
The supervisory agreement limited the amount the company could grow, among other restrictions.
Palfed, the parent of Palmetto Federal Savings Bank, operates 16 offices in southwestern South Carolina.