HomeStreet in Seattle Freed from Regulatory Order

The Federal Reserve Bank of San Francisco has terminated its regulatory action against HomeStreet in Seattle.

The San Francisco Fed lifted the 2009 cease-and-desist order on March 26, HomeStreet said Wednesday. The $2.6 billion-asset HomeStreet had a Tier 1 leverage ratio of 11.8% and a total risk-based capital ratio of 19.3% as of Dec. 31, according to information from the Federal Deposit Insurance Corp.

This month regulators allowed HomeStreet to pay $13.5 million in past-due interest to holders of its trust preferred securities. The order required it to seek regulatory approval before making such payments.

The FDIC lifted its regulatory order against the company's bank unit in December.

HomeStreet reported a record profit of $82 million in 2012, driven by mortgage lending. It was hit hard by the housing crisis but was able to raise nearly $100 million through an initial public offering last year.