Cascade Financial Corp., which received a government bailout, is among three small bank holding companies the Federal Reserve is scrutinizing.

The Fed said Tuesday that it has entered into written agreements with Cascade, of Everett, Wash.; Crete Bancorp. Inc. in Crete, Ill.; and Bank of Choice Holding Co. in Greeley, Colo.

The Fed is requiring the companies to provide plans to maintain sufficient capital and to curb dividend payments. The banks also are being prohibited from incurring new debt without the Fed's approval.

Cascade received nearly $39 million in funds from the Troubled Asset Relief Program in October 2008. It is among several banks that received government bailout funds and has come under increased scrutiny by regulators.

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