The Federal Reserve Board has lifted a written agreement with Ames Community Bank in Iowa that required the company to improve its credit administration.

The October 2009 agreement among Ames, the Federal Reserve Board of Chicago and Iowa banking regulators required the $406 million-asset bank to strengthen the board's oversight of management.  Ames also had to take steps to reduce the level of concentrations in its commercial real estate loan portfolio, boost capital, improve earnings, strengthen risk management and revise its allowance for loan losses.

At June 30, Ames' core capital leverage ratio was 10.08%, and its total risk-based capital ratio was 14.18%, according to the Federal Deposit Insurance Corp.

The bank could not declare or pay dividends without approval. The written agreement was terminated on Thursday, the Fed said Tuesday.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.