First Savings Bank Northwest in Renton, Wash., has been released from a formal enforcement order with its regulators after substantially reducing its problem loans and demonstrating that it can earn money on a consistent basis.

The thrift's parent company, First Financial Northwest (FFNW), said Monday that the consent order put in place in September 2010 was lifted last week and has been replaced by a less-formal memorandum of understanding. The order required the thrift to lower its level of classified assets and improve its overall condition after it had been hammered by losses on real estate loans.

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