The Federal Reserve Bank of Atlanta has ended a 2008 enforcement action against Ocean Bankshares, which controls Miami-based Ocean Bank, over bad loans made before the financial crisis.
Ocean Bank saw its real estate investments go south when the real estate market tanked after the financial crisis.
The 2008 deal required federal approval for dividend payments and changes of management at the holding company. It also addressed minimum capital ratios and mandated that the bank set up a rainy-day fund to cover its bad loans.
The Federal Reserve regulates bank holding companies. Last year, the Federal Deposit Insurance Co., which regulates banks, terminated a consent order issued against Ocean Bank in 2011 over similar problems.
“The action by the Federal Reserve reflects Ocean Bankshares’ vigorous work to be in full compliance with the order, the progress we have made in our policies and procedures and the resounding financial turn-around and steady profitability of Ocean Bank and Ocean Bankshares,” the company said in a statement.
Ocean Bank has 21 branches and more than $3.2 billion in assets, according to federal records. The bank reported net income of 28.8 million for fiscal year 2014. The bank’s total risk-based capital ratio was 13.39 percent, which is considered well-capitalized.