The Federal Reserve Board has ended a written agreement with Boscobel Bancorp that required the Wisconsin company to serve as a source of strength for its Community First Bank.
The December 2010 agreement with the $217 million-asset Boscobel and Community First required the bank to submit a plan to strengthen board oversight of its management and operations and provide a plan to strengthen credit risk management practices.
The bank also had to review and revise its methodology for determining its allowance for loan and lease losses to ensure that its practices were consistent with regulatory guidance.
The company had to submit plans to maintain sufficient capital at Community First, improve its liquidity position and funds management practice and boost its interest rate risk management practices.
Boscobel could not declare or pay dividends without prior approval from the Federal Reserve.
The order was terminated Friday, the Fed said Tuesday.
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