The Federal Reserve on Tuesday announced that it had reached a written agreement with BW Bancorp in Ely, Minn.

BW Bancorp agreed to be a source of strength to the $117.8 million-asset Boundary Waters Bank, which has been operating under a consent order from the Federal Deposit Insurance Corp. since Jan. 27.

The company is also barred from paying dividends or making distributions of interest or principal on subordinated debt and trust-preferred securities without Fed approval, among other requirements.

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.