The Federal Deposit Insurance Corp. has ordered a North Dakota bank to stop lending practices it considers unsafe and illegal.

First State Bank of Sharon was slapped with a cease-and-desist order in April that charged it with failure to properly identify credit risks and poor bookkeeping.

The FDIC order was made public this week.

First State, which has $30.4 million of assets, consented to the order without admitting or denying the accusations. It also agreed to take steps to improve its business, such as hiring a new senior lending officer, said president Chuck Youells.

First State lost $79,000 in 1998, compared to a profit of $246,000 in 1997.

The bank also charged off $800,000 in 1998, as opposed to $366,000 the year before.

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