YOUNGSTOWN - Federal regulators and state officials on Tuesday acknowledged Home Savings' return to profitability by terminating a consent order created nearly a year ago.
The Federal Deposit Insurance Corporation and the Ohio Division of Financial Institutions terminated the consent order for Home Savings and Loan company and its holding company, United Community Financial Corp., the company announced Tuesday. The consent order had been put into place March 30, 2012.
Termination of the consent order means Home Savings now is considered well capitalized and no longer a troubled institution, the bank president said. It also will allow the bank to once again take deposits from public institutions.
"We have worked, and continue to work, tirelessly to strengthen Home Savings and restore United Community back to profitability,'' Patrick W. Bevack, president and CEO of United Community and Home Savings, said Tuesday. ''By completing the bulk sale we announced in September 2012, we substantially improved asset quality and achieved a dramatic reduction in our risk profile."
United Community had announced recently that it had entered into securities purchase agreements with several accredited investors and others to raise capital. Most of the capital raised will be contributed to Home Savings.
"We will continue to work closely with our regulators to ensure that we remain focused on resolving Home Savings' remaining asset quality issues and that Home Savings maintains capital levels that are commensurate with its risk profile," Bevack said.