Anchor Bank in Lacey, Wash., has been released from a state regulatory order.

The $398 million-asset Anchor Bancorp said in a press release Monday that the Washington Department of Financial Institutions has lifted a supervisory directive with the bank, issued in September 2012.

"We are very pleased that our regulators have acknowledged significant improvements at the bank," said Jerald Shaw, Anchor's president and chief executive, adding that the bank is "still working to establish a sustainable level of profitability" and improve asset quality.

Last month, the company reported earnings of $113,000 for the quarter ending Sept. 30, its first quarter for fiscal 2015. A year earlier, the company reported a $12,000 loss. Nonperforming assets made up 2.3% of the company's total assets at Sept. 30, compared to 3% a year earlier.

Anchor has 11 branch locations in western Washington.

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