Fed Takes Action Against Two Banks

The Federal Reserve Board has entered into written agreements with two community banks.

Remer Bancorp. in Minnesota has agreed to be a source of strength for its Woodland Bank in Deer River, Minn., according to agreement released by Fed on Thursday.

The $110 million-asset company cannot declare or pay any dividends or purchase stock without Fed approval. It also must provide progress reports within 45 days of the end of each quarter to the Fed.

Woodland Bank has been operating under a consent order with the Federal Deposit Insurance Corp. since December. That order requires the bank to retain qualified management, revise its loan policy and credit administration procedures and change its allowance for loan and lease losses, among other things.

Separately, Orrstown Financial Services (ORRF) entered into a written agreement with the Fed and a consent order with the Pennsylvania Department of Banking, which the Shippensburg, Pa., company previously warned would happen.

The agreements require the $1.4 billion-asset company to strengthen oversight of management and operations, adopt a plan to reduce its interest in criticized or classified assets and maintain an adequate allowance for loan and lease losses, Orrstown said Friday in a regulatory filing.