Fed Frees Fentura in Michigan from Enforcement Action

The Federal Reserve Board has released Fentura Financial (FETM) in Fenton, Mich., from an enforcement action.

The Fed announced Thursday that it had freed the $316 million-asset company from a written agreement reached in November 2010. Fentura agreed at that time to take steps to ensure that its banks, State Bank and West Michigan Community Bank, would comply with older orders issued by the Federal Deposit Insurance Corp. and Michigan's Office of Financial and Insurance Regulation.

The written agreement also required Fentura to submit a plan for maintaining sufficient capital and refrain from taking on new debt or redeeming stock without Fed approval.

At June 30, Fentura had a Tier 1 leverage ratio of 9% and total risk-based capital ratio of 13%, according to the FDIC.

West Michigan Community Bank and State Bank were freed from their consent orders in February 2011 and in March of this year, respectively.