Summit Financial Group in Moorefield, W.Va., has been freed from a five-year regulatory order.

The Federal Reserve Board and the West Virginia Division of Financial Institutions on Friday terminated an informal memorandum of understanding with the $1.4 billion-asset company. The memorandum dates back to November 2009.

Summit's bank was freed from a similar enforcement action late last year.

"Summit has now largely recovered from the impact of the effects of the economic downturn of the last decade," H. Charles Maddy 3rd, Summit's president and chief executive, said in a press release.

"Our earnings improvements, growing loan portfolio, increasing revenues, improved net interest earnings, strengthened capital, reductions in our portfolio of problem assets and the recent lifting of holding company and bank MOUs, all serve as evidence of our recovery," Maddy added.

Summit has 17 branches in Virginia and West Virginia, according to the Federal Deposit Insurance Corp.

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