A unit of Palmetto Bancshares in Greenville, S.C., has shed an enforcement order with the Federal Deposit Insurance Corp.
The $1.1 billion-asset company announced Monday that regulators have terminated an order that required its Palmetto Bank unit to attain a Tier 1 capital ratio of at least 8% of assets and a total risk-based capital ratio of at least 10% as part of a long list of reforms.
"Termination of this regulatory agreement is a fitting start to 2013 for the Palmetto Bank," its chief executive, Samuel Erwin, said in a news release. "This positive action by the banking regulators is further confirmation that the execution of our strategic plan is yielding the desired results."
The June 2010 order also directed the bank to eliminate from its books all loans flagged by examiners as doubtful; review its policies for accounting for losses from loans; refrain from extending credit to any borrower whose loan examiners flagged as doubtful; turn down deposits from brokers; and hold off on paying interest or principal on subordinated debt without permission from regulators.
Palmetto agreed to limit growth in its loan book to 10% a year and to review policies that govern its lending. And it had to detail in writing a budget and plans for lowering its exposure to loans of at least $1 million that examiners flagged as substandard, to reduce concentrations of credit and to attract and retain qualified management.
The FDIC terminated the order Wednesday, Palmetto said.
