The Federal Reserve Board has terminated a regulatory order with Waterstone Financial (WSBF) in Wauwatosa, Wis.

The Fed terminated the 2009 cease-and-desist order, which was originally between the $1.2 billion-asset company and the Office of Thrift Supervision, on July 9, Waterstone said Thursday. The order required Waterstone to form a plan to improve capital levels and forbid it from paying dividends or taking on debt without authorization.

"Our teams have worked diligently to improve operations and return to profitability," Doug Gordon, Waterstone's president and chief executive, said in a press release. "It is their hard work and dedication that have strengthened our organization."

The Federal Deposit Insurance Corp. terminated a regulatory order against Waterstone's bank in January. At April 30, the bank had a Tier 1 leverage ratio of 11.79% and total risk-based capital of $18.75%.

In June, Waterstone announced plans to convert to a publicly traded company from a mutual.

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