Fed Ends Enforcement Action Against West Concord Bancshares in Minnesota

The Federal Reserve Board has terminated an enforcement action against West Concord Bancshares in Minnesota.

The parent of the $46 million-asset Farmers State Bank in West Concord had been under an order since November 2009 that barred the company from paying dividends or redeeming debt or shares of stock until the company's board strengthened its oversight of management.

Those steps included retaining a consultant independent of management to review the bank's governing practices and management needs,

The Fed also ordered the bank to submit a plan to boost regulatory capital, to detail in writing plans to improve its earnings, to identify sources of liquidity, and to improve its underwriting and risk management practices.

The bank had been required to provide business plans and budgets annually beginning in 2010. The Fed lifted the order on Sept. 27 and released its decision Tuesday.