The Federal Reserve has given Community Banks of Colorado 90 days to return to adequately capitalized status or sell itself.

The $1.6 billion-asset bank and its holding company, Community Bankshares Inc., consented to a prompt-corrective-action order on Feb. 4, the Fed said last week.

The bank and the company have been operating under a written agreement with the Fed since March 2009.

The directive calls for the bank to sell itself or raise equity. It also prohibits the bank from accepting or renewing any deposits paying an above-market interest rate. Within 30 days of the order, the bank must also submit a plan to bring all of its deposit rates to market levels.

At Dec. 31, the Greenwood Village bank was significantly undercapitalized, with a total risk-based capital ratio of 5.28% and a leverage ratio of 2.99%. The bank has a high level of nonperforming assets, which made up 13.5% of total assets at Dec. 31.

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