BankTennessee in Collierville has been released from a two-year-old enforcement order after it improved its capital ratios and sharply reduced its concentration of commercial real estate and construction loans.

The $247 million-asset bank was ordered by the Federal Reserve Bank of St. Louis in early 2010 to clean up its loan portfolio, boost capital levels and curtail its CRE lending following a more than $3 million loss in 2009.

The bank turned a profit in each of the last two years as its credit quality improved and has reduced its concentration of CRE and construction loans by 33%, to $108 million, according to Federal Deposit Insurance Corp. data at Dec. 31. Its total risk-based capital ratio was 12.32% at Dec. 31, compared to 12.28% two years earlier.

The Fed terminated enforcement orders against the bank and its holding company, BankTennessee Bancshares, on Tuesday.

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