Farmers Capital Bank in Versailles, Ky., has been freed from a regulatory order.

The company said in a press release Tuesday that its $524 million-asset bank had its memorandum of understanding lifted by the Federal Deposit Insurance Corp. and Kentucky Department of Financial Institutions. The January 2014 order required the bank to maintain a 9% Tier 1 leverage capital and a 13% total risk-based capital ratios of 9% and 13%.

The bank's Tier 1 leverage ratio was 11.08% at Dec. 31, while it had a total risk-based capital ratio of 19.26%.

"While we realize the need to continue to reduce the level of nonperforming assets, we are pleased to receive acknowledgement by our regulators of the improvements we've made," Lloyd Hilliard, Farmers Capital's president and chief executive, said in the release.

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