Suffolk Bancorp (SUBK) in Riverhead, N.Y., has been released from a written agreement with the Office of the Comptroller of the Currency.
The $1.6 billion-asset company's bank had been operating under the agreement since October 2010. The agreement, among other things, required the bank to review management, establish a three-year strategic plan and capital program, and create programed tied to internal audit, an adequate loan-loss allowance and credit risk management.
The agreement also required Suffolk County National Bank to maintain a Tier 1 leverage ratio of 8% and a total risk-based capital ratio of 12%. At March 31, the bank had a 9.77% Tier 1 leverage ratio and a 17.53% total risk-based capital ratio.
The company hired Howard Bluver as president and chief executive in January 2012 to address issues such as management, credit and profitability. He has since brought in new executives, raised capital and purged the balance sheet of nonperforming loans.
"When I arrived at the company in 2012, the two most important short term priorities were to build a premier senior management team and clean up our balance sheet," Bluver said in a press release Monday. "With both of those short term goals accomplished, we are now in a position to leverage our exceptional core deposit franchise and focus on future growth and financial performance. Termination of the agreement will facilitate our ability to do so."
