FSG Bank announced Tuesday afternoon the Chattanooga-based bank has made improvements so that it is no longer under federal oversight.
Officials said, "The Office of the Comptroller of the Currency has provided written notification of the termination of the consent order with FSG Bank."
Larry Mauldin, chairman of the board of directors, said, “Since 2012, our board and management team's primary goal was to effect the transformation of FSG Bank into a premier community bank in East Tennessee.
“Accomplishing this goal required three distinct tasks: raising capital, resolving the asset quality problems, and satisfying the bank’s consent order. Today’s announcement establishes management’s successful execution of all three tasks.
"With the termination of the consent order, FSG Bank is now considered 'well-capitalized' under the FDIC’s prompt corrective action provisions. This designation provides FSG Bank with opportunities for enhanced operational efficiencies, including within its liquidity management, mortgage operations and SBA lending operations.“
Michael Kramer, president and chief operating officer, said, "We have appreciated working with the OCC to resolve the issues identified in the consent order. The lifting of the order removes significant operational and financial constraints while enhancing our ability to execute our strategic plan.We can now direct more of our time and energy toward returning to core profitability and building long-term shareholder value.”