The Federal Reserve Board has terminated an April 2013 enforcement action against Freedom Bancorp in Lindstrom, Minn.
The written agreement required Freedom to increase board oversight in order to ensure that its bank complied with a November 2012 consent order issued by the Federal Deposit Insurance Corp. and the State of Minnesota Department of Commerce. The $259 million-asset Freedom was also required to obtain regulatory approval before paying dividends or taking on new debt.
Freedom's banking unit, Lake Area Bank, was freed from the FDIC consent order in November. The consent order had required the bank to address issues with management and troubled loans. It was also required to maintain a minimum 8% Tier 1 leverage ratio and a minimum 11.5% total risk-based capital ratio. Lake Area had an 8.56% Tier 1 leverage ratio and a 12.42% total risk-based capital ratio as of Dec. 31.