The future of two large community banks in the Midwest is in jeopardy after regulatory orders that require the banks to raise capital quickly or find a buyer.

In the order, formally known as a "Prompt Corrective Action Directive," the Fed laid out several actions, as outlined in the Federal Deposit Insurance Act, that the bank must take promptly to address its financial challenges.

The Federal Reserve Bank of St. Louis announced Tuesday it had entered into a written agreement with BankTennessee Bancshares Inc. and its subsidiary to improve its loan quality and tighten lending standards.

Working out a problem loan is never easy, but it becomes quite a bit tougher when a troubled bank is the only underlying collateral.

Orrstown Financial Services Inc. in Shippensburg, Pa., announced that it had raised $40 million in a public offering. The $1.2 billion-asset company said Monday that it sold 1.48 million shares of common stock for $27 a share, a 24.3% discount to its closing price on March 15.

Citizens Bancshares Corp. of Atlanta announced that its earnings declined 30% in 2009. The $388 million-asset company said Monday that its earnings dipped to $715,000, from $1 million in 2008.

A credit union public funds bill has been signed into law by Oregon Gov. Ted Kulongoski, removing a $250,000 ceiling on public fund deposits a credit union can hold.

BofI Holding Inc. in San Diego has announced plans to raise $13.19 million in a public stock offering. The $1.4 billion-asset company, whose business niche is providing banking services over the Internet, priced the offering of 1.066 million shares at $13 per share on Tuesday, 7% under its stock's Monday closing price of $14.

Amid concerns about its future, Amcore Financial Inc. in Rockford, Ill., said it had sold 12 branches and two stand-alone drive-up sites of its main subsidiary, Amcore Bank.

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The vast majority of credit unions no longer permit credit-card holders to exceed their credit limits, according to The Members Group.

Arrow Financial Corp. in Glens Falls, N.Y., said it has a deal to buy the area insurance firm Loomis & LaPann Inc. for an undisclosed price.

Atlantic Coast Federal Corp. has recruited veteran banker Jay S. Sidhu to its board.

A bill that would give New York credit unions access to tens of millions of dollars in municipal deposits cleared the New York State Senate last week as part of a budget resolution, giving it momentum for a vote in the state Assembly.

Centrue Financial Corp. in St. Louis reported a $14.5 million fourth-quarter loss on Monday, nine times more than its loss the year earlier.

When Pacific Continental says it is going to be picky, it has credibility. After all, the $1.1 billion-asset company in Eugene, Ore., has made only one acquisition since 1972.

SAN BERNARDINO, Calif.-Fast-growing Alaska USA FCU, which entered the California market with last year's acquisition of two failed credit unions near here, has finalized an agreement with Arrowhead Central CU to acquire five of its branches, four in the High Desert and one in Big Bear region.

WINNIPEG, Manitoba, Canada-While many credit unions are looking for ways to reduce the size of their branches, Steinbach CU here is wrapping up construction of a massive 42,000 square-foot branch, one of the largest in the entire province.