The Federal Reserve Board has terminated an enforcement action against Johnson Financial Group in Racine, Wis.
The $3.7 billion-asset Johnson Financial had been under an order since May 2011 that required the company to serve as a source of strength for its Johnson Bank subsidiary and included a ban on paying dividends, incurring debt or redeeming stock.
Regulators required the company to detail in writing plans to strengthen oversight of the bank's management by its board of directors, to maintain sufficient capital, and to document its sources and uses of cash.
The order also required the bank to strengthen its credit risk management practices, to enhance lending and credit administration, to improve its position in connection with troubled loans, to bolster liquidity, to refrain from lending to any borrower whose loans were flagged by examiners in an October 2010 examination report, and to charge off loans examiners might classify as lost.
The Fed terminated the order on Nov. 26 and released its decision on Thursday.