Riverview Community Bank in Vancouver, Wash., has been freed from a formal agreement with the Office of the Comptroller of the Currency.
The $805 million-asset unit of Riverview Bancorp (RVSB), entered into the agreement with the OCC in January 2012. It was required to improve its lending practices and credit risk management policies. It was also ordered to address deficiencies in the management and board oversight of its loan process.
Riverview's efforts to clean up its troubled loan portfolio paid off last year when it returned to profitability. It earned $4.7 million last year, compared to a loss of $14.2 million in 2012 and $11 million in 2011, according to the Federal Deposit Insurance Corp. It had a Tier 1 leverage ratio of 10.42% and a total risk-based capital ratio of 16.76% as of Dec. 31.
"The lifting of the agreement is a testament to the diligent efforts of our employees and we're proud that we were able to accomplish this without any government financial assistance," Riverview Chairman and Chief Executive Pat Sheaffer said in a Tuesday press release. Riverview has committed to making $200 million in loans this year, her said.
Riverview named Daniel Cox as its new chief credit officer in March. Cox had been acting chief credit officer and head of credit administration. He was "instrumental in dramatically reducing our problem credits, crafting new policies and improving the loan approval process," Ron Wysaske, the bank's president and chief operating officer, said in a March press release.