United Community Financial (UCFC) in Youngstown, Ohio, has been released from a memorandum of understanding with the Federal Deposit Insurance Corp. and state regulators.

The enforcement action, issued in January, required Home Savings and Loan to maintain a Tier 1 leverage ratio of at least 8.5% and a total risk-based capital ratio of at least 12%. The thrift was also required to seek regulatory approval before paying dividends to United Community.

At Sept. 30, Home Savings had a Tier 1 leverage ratio of 10.26% and a total risk-based capital ratio of 19.78%.

"We are very pleased that Home Savings' regulators have terminated the MOU," Patrick Bevack, United Community's president and chief executive, said in a press release. "We have worked extremely hard over the past five years to strengthen Home Savings and restore United Community back to profitability, and our efforts have paid off. Now we will focus those efforts on growing the company and pursuing our strategic goals."

After losing $20.4 million last year, United Community raised $5 million in a June rights offering and sold $40 million of stock in March. The $1.8 billion-asset company earned $1.7 million in the third quarter.

United Community and its thrift were released from two additional enforcement actions earlier this year.

Bevack plans to retire as president and CEO next year, though United Community has not yet named a successor.

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