Centrue Financial in Ottawa, Ill., has been released from an enforcement action that had prohibited the company from paying dividends without regulatory approval.

The Federal Reserve Bank of Chicago and the Illinois Department of Financial and Professional Regulation on Thursday terminated their written agreement with the $961 million-asset Centrue, according to a regulatory filing.

The December 2009 written agreement had required Centrue to strengthen its credit risk management, improve loan underwriting and administration, improve asset quality, review and revise its policy on loan and lease losses, maintain sufficient capital and take other steps.

Within the past four months Centrue has announced plans to sell three branches and named a new chairman after its longtime chairman retired for health reasons.

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