The Federal Reserve Board has announced the termination of regulatory orders with four lenders Thursday.
The Fed terminated a 2010 written agreement with the $2 billion-asset FNB United Corp in Asheboro, N.C., which changed its name to CommunityOne Bancorp in June. The agreement prohibited the company from paying dividends or issuing debt without the regulator's approval, and required it to develop a capital plan and issue progress reports.
CommunityOne, which was on the brink of failure three years ago, returned to profitability in the third quarter after a clean-up effort that involved a $310 million investment of from two private-equity firms and the merger of its bank subsidiaries. CommunityOne held a Tier 1 leverage ratio of 7.39% and total risk-based capital of 12.99% as of Sept. 30, according to the Federal Deposit Insurance Corp.
The Fed also terminated a written agreement with the $429 million-asset Highland Bancshares in St. Michael, Minn., it announced. The 2010 agreement required the company to improve its board oversight and capital position, among other provisions.
The FDIC terminated a similar order with Highland in August. The bank held Tier 1 capital of 8.77% and total risk-based capital of 14.66% at the end of September, according to the FDIC.
The Fed also terminated cease-and-desist orders with two Washington, D.C., banks: National Consumer Cooperative Bank and NCB Financial Corp. Both orders were issued by the Office of Thrift Supervision, which was merged into the Office of the Comptroller of the Currency in 2011.
