WASHINGTON — The Federal Reserve on Monday announced an enforcement action against First Banking Center Inc. to ensure the bank is adequately capitalized.

Declaring the Burlington, Wis. bank "significantly undercapitalized," the Fed laid out several actions the state-chartered bank must take promptly to address its financial challenges.

Within 60 days, First Banking Center must take steps to become adequately capitalized, possibly by being acquired by another institution or increasing its equity through the sale of shares, the Fed said.

Meanwhile, the bank faces restrictions on dividend payments and other capital distributions, as well as on accepting new deposits.

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