WASHINGTON — The Federal Reserve on Monday announced it has taken enforcement action against two banks in Montana and Florida.

In the first action, the Fed ordered the Lake County Bank in Saint Ignatius, Mont., to devise a plan to strengthen the oversight of its board and its risk-management practices. It also must come up with a program to improve its internal review and grading of its loan portfolio and a plan to bolster its earnings.

The other enforcement action was taken against Paradise Bank in Boca Raton, Fla. Under its agreement with the Fed, Paradise Bank must create a plan to improve its management and operations and credit risk management practices, among other things. The bank was also prohibited from extending, renewing or restructuring credit extended to borrowers in cases where those loans were criticized by the Fed during its examination of the bank. The bank is only allowed to take action in this area after a majority of the board of directors approves the credit extension first.

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