Tennessee Commerce Bancorp Inc. in Franklin will not be required to restate its 2010 earnings after all, but it is under orders to boost its capital ratios.

The $1.5 billion-asset company had delayed filing its 2010 annual report with the Securities and Exchange Commission out of concern that regulators might require it to add to its previously reported loan-loss provisions. But the company filed its 10-K this week after disclosing that a restatement would not be necessary.

Tennessee Commerce reported a profit of $1.9 million in 2010, compared to a loss of $7.1 million in 2009, but this year hasn't started out so well. The company lost $3.2 million in the first quarter, mostly on soured real estate loans, and regulators are concerned enough about its credit quality that have told the company to increase its capital levels.

On Wednesday, the company said it signed a consent agreement with the Federal Deposit Insurance Corp. last week in which it agreed to maintain a Tier 1 leverage capital ratio of at least 8.5%, a Tier 1 risk-based ratio of at least 10% and a total risk-based capital ratio of at least 11.5%. At March 31, only its leverage ratio was above the level prescribed by regulators.

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