Suffolk Bancorp said Monday that it had emerged from special oversight by federal bank regulators that had been in place since flawed accounting forced the bank to restate financial results for one quarter in 2010 and file several others late in 2011.
The Riverhead-based parent of the 30-branch Suffolk County National Bank said it was notified May 29 by the Office of the Comptroller of the Currency that it had satisfied an agreement with its primary regulator and that it was no longer subject to special minimum capital ratios imposed by the office.
Suffolk said that, as of March 31, the bank was considered "well capitalized."
Suffolk's president and chief executive Howard C. Bluver said in a statement, "When I arrived at the company in 2012, the two most important short-term priorities were to build a premier senior management team and clean up our balance sheet. With both of those short-term goals accomplished, we are now in a position to leverage our exceptional core deposit franchise and focus on future growth and financial performance."
The flawed accounting caused the bank to file some financial statements late with the Securities and Exchange Commission, leading in turn to a threat by the Nasdaq Market to delist the bank's stock.
Suffolk announced in December of 2011 that it was fully caught up in its filings. Its shares closed Monday on the Nasdaq Stock Market at $15.88, up 82 cents.