Community Bank-Wheaton/Glen Ellyn in Illinois has been released from a cease-and-desist order from the Federal Deposit Insurance Corp. and state regulators.

The February 2011 order against the $351 million-asset unit of Community Financial (CFIS) was lifted on Jan. 10. The action required the bank to clean up its loan portfolio and maintain a minimum 8% Tier 1 leverage ratio and 12% total risk-based capital ratio. The bank was also ordered to manage its sensitivity to interest rate risk, develop a profit plan and budget and increase board oversight.

The order's lifting marks "a significant milestone in the rejuvenation of Community Bank," Donald Wilson, Community Financial's chairman, president and chief executive, said in a Wednesday press release. "Since the addition of significant new capital over the last year, the entire team, at all levels, has been working very hard to achieve this result and we are pleased the regulators have recognized the progress achieved."

Community Financial announced in November 2012 that it would receive $24 million from a group of 63 investors led by private-equity firm Clinton Group. The company also raised $3.9 million in a private placement that closed in October 2013.

The company had a 6.7% Tier 1 leverage ratio and a 11.4% total risk-based capital ratio as of Sept. 30. It lost $450,000 in the third quarter and lost $3 million in the first nine months of 2013, according to regulatory filings.

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