First Community in Montana Freed from Fed Order

The Federal Reserve Board has lifted a regulatory order on First Community Bank in Glasgow, Mont.

The 2010 written agreement, which was terminated Oct. 25, required the $237 million-asset bank to strengthen the oversight role of its board of directors, develop a written program for loan grading and loan review, improve its asset quality and write off bad loans. It also forbid First Community from paying dividends or taking on debt without permission.

The bank held $22.8 million in equity capital as of Sept. 30, according to the Federal Deposit Insurance Corp. Its Tier 1 leverage ratio was 9.52%, and its total risk-based capital ratio was 16.84%.