Regulators said Friday they had terminated a 2009 cease-and-desist order against Seattle’s Regal Financial Bank. Last month, the privately held bank completed a $12 million capital campaign it began in September 2011.

Thanks to the capital infusion, the bank’s Tier 1 risk-based capital covered 18.2 percent of its assets at the end of 2012, up from 7.8 percent a year earlier, according to SNL Financial.

CEO Randy James said the bank reduced its troubled-loans ratio to 35 percent, down from more than 200 percent, and expanded lending to doctors’ offices and other small businesses.