Progressive Growth in Minn. Freed from Fed Enforcement Action

Progressive Growth in Gaylord, Minn., has been released from an enforcement action.

The Fed said Tuesday that it terminated a written agreement with Progressive on Feb. 1. The agreement barred Progressive or its $136 million-asset ProGrowth Bank in Nicollet, Minn., from paying dividends or taking on new debt without approval.

It agreement also required Progressive to take steps to ensure that its bank complied with a July 2010 consent order from the Federal Deposit Insurance Corp. The FDIC's consent order, which was terminated last June, required ProGrowth to charge off and reduce bad loans, improve credit policies and maintain Tier 1 capital of at least 8.5% and total risk-based capital of 11.5%.

ProGrowth's Tier 1 leverage ratio was 8.31% and its total risk-based capital ratio was 15.31%, at Dec. 31.