Already operating under a consent order that requires it to improve its lending practices, First National Bank of Brewster, Minn., was hit with a second order for failing to keep proper records.
The Office of the Comptroller of the Currency said this week that the $23 million-asset First National signed the second order Feb. 28.
That order requires the bank to undergo an external audit this month. Also, its board must make sure that all its books, records, and management information systems are "restored to a complete and accurate condition."
The board must also develop a plan to evaluate the bank's internal record-keeping controls.
Under the consent order it entered with the OCC in August, First National agreed to hire a senior loan officer, raise its capital, limit its credit extensions, and review its loan portfolio. The bank has not made money since the fourth quarter of 2004, when it earned only $16,000.
