The Federal Reserve has taken action against one bank and lifted an order on another.
Directors at Northwestern Bancorp in Traverse City, Mich., have been ordered to strengthen their oversight of its $841 million-asset Northwestern Bank unit, according to a written agreement dated June 7 and released Thursday.
The agreement gives Northwestern 60 days to strengthen its risk management practices, tighten internal controls and detail in writing plans to ensure the accuracy of its regulatory reporting. The company also has agreed to refrain from paying dividends, redeeming debt or taking other actions that diminish its capital without the approval of regulators.
Separately, the Fed has freed Saehan Bancorp (SAEB) in Los Angeles from a 2010 order that directed the company to serve as a source of strength for its bank unit and to detail in writing its capital plans.
The Fed terminated the order on June 5. In March, the Federal Deposit Insurance Corp. freed the $542 million-asset bank from a similar order.