The Federal Reserve Bank of Chicago has ordered CB Holding Corp. in Aledo, Ill., to serve as a source of strength for its struggling bank unit, Country Bank.

Under the agreement struck on Aug. 23 and announced Tuesday,  the $191 million-asset CB Holding is prohibited from paying or receiving dividends or purchasing or redeeming any of its shares.

Country Bank's condition has deteriorated rapidly in the last year as losses on real estate and commercial loans have mounted. At June 30, more than 43% of its loans were at least 90 days past due, compared to 0.5% a year earlier, according to Federal Deposit Insurance Corp. data.

The bank is now critically undercapitalized, with a total risk-based capital ratio of 1.59%, compared to 14.62% at June 30, 2010.

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