United Community Financial (UCFC) in Youngstown, Ohio, has been freed from a cease-and-desist order.
The Federal Reserve Bank of Cleveland terminated the order July 2, the $1.8 billion-asset company said Tuesday. The order was originally issued by the Office of Thrift Supervision in August 2008.
Although the order has been lifted, United Community still has an understanding with the Fed that it will not pay dividends, repurchase shares, or take on debt without the Fed's approval, it said.
"We are very pleased that the Federal Reserve has acknowledged the progress we've made in restoring the company to financial stability," Patrick Bevack, the company's president and CEO, said in a press release. "We have established a very good working relationship with our regulators."
United Community's banking unit, Home Savings and Loan, was freed from an enforcement action taken by the Federal Deposit Insurance Corp. in February.