Florida Bank in Tampa has been freed from a memorandum of understanding issued by state regulators, according to a report in the Tampa Bay Business Journal.

The $536.4 million-asset bank, a subsidiary of Florida Bank Group, had been operating under an order issued by the Florida Office of Financial Regulation in January 2012. The memorandum required Florida Bank to maintain a minimum 8% Tier 1 leverage ratio and a minimum 12% total risk-based capital ratio, according to a regulatory filing.

The bank boosted its capital ratios after completing a $33 million private placement offering in August. It had a 9.6% Tier 1 leverage ratio and a 16.9% total risk-based capital ratio as of Dec. 31.

Florida Bank is still subject to a written agreement with the Federal Reserve Bank of Atlanta. The March 2011 agreement requires the company and its bank to improve credit risk management, reduce troubled assets and submit a capital plan.

"This has been a transformational year for the bank, going from the ranks of the walking dead to the ranks of the jogging alive," the bank's chief executive, Susie Martinez, said in a recorded investor call, according to the Business Journal. "We're not running yet, but we're on our way."

State regulators declined to comment Monday on the status of the memorandum because, they said, the agreements are confidential. Florida Bank did not immediately return a call seeking comment.

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