The Federal Reserve Board has terminated a written agreement with Farmers Bank in Ault, Colo.

The May 2010 pact obligated the $232 million-asset bank's directors to strengthen oversight of management.

It required the bank to detail in writing plans to tighten underwriting, refrain from extending additional credit to borrowers whose loans examiners had flagged and to charge off losses completely.

Farmers also promised to maintain sufficient capital, to manage liquidity better and to send regulators annual business plans and budgets.

The Fed terminated the order on June 20 and announced its decision on Tuesday.

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