Regulators have lifted a seven-year-old enforcement action against CIB Marine Bancshares (CIBH) in Waukesha, Wis.

CIB Marine had to revise its lending procedures, improve cash flow and capital levels, strengthen board oversight and risk management, and develop a management succession plan under a 2004 written agreement with the Federal Reserve Bank of Chicago.

The $457.7 million-asset company also agreed to adopt a stricter conflict-of-interest policy that addressed the ethical pitfalls of providing loans to insiders and shareholders.

CIB lost $288 million between 2003 and 2011 and filed for Chapter 11 bankruptcy in 2009, but it has made progress lately.

It was freed from a Federal Deposit Insurance Corp. order in March. That order, issued in April 2010, required its CIBM Bank to maintain a Tier 1 leverage ratio of at least 10% and a total risk-based capital ratio of at least 12%, among other obligations. The bank unit reported a Tier 1 leverage ratio of 12.6% and total risk-based capital of 16.7% as of June 30 this year.

A few months after the FDIC order was lifted, CIB Marine agreed to buy suburban Chicago mortgage lender Avenue Mortgage.

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