Independence Federal Savings Bank in Washington announced Tuesday that a cease-and-desist order under which it had been operating since June 2006 has been terminated, though it is still subject to a memorandum of understanding until further notice.
The order, imposed by the Office of Thrift Supervision, required the thrift, which has not made a profit since 2001, to conduct a thorough review of its operations and consider selling itself.
Independence Federal's financial troubles stemmed largely from a protracted battle with one of its shareholders for control of the thrift. In March of last year the shareholder was given approval to acquire a stake of up to 51% of Independence Federal, and in June the thrift brought in a new president and chief executive officer.
The $151 million-asset thrift had also been operating under a Troubled Condition Letter it received in late 2003. It said Tuesday that the letter had been terminated, but the memorandum of understanding would remain in effect until the thrift addresses "deficiencies" identified in its most recent OTS examination.
