WASHINGTON - The Federal Reserve Board announced an agreement Wednesday with Olathe Bancorp., a holding company in Olathe, Colo., to bring its subsidiary state bank into compliance with capital rules and to correct various problems in its internal controls.

Olathe Bancorp. and Olathe State Bank must submit a written plan for restoring capital to an adequate level, and the bank's board of directors have 30 days to submit a proposal addressing internal control failures uncovered in an independent audit of the bank's books.

The agreement, signed by the Fed, the Federal Reserve Bank of Kansas City, and the Colorado Division of Banking, places numerous restrictions on the bank, including bans on the distribution of dividends and the accepting of brokered deposits.

Olathe State Bank, which had $30.5 million of assets as of June 30, must also submit a new job description for its consumer compliance officer and implement new consumer compliance training for its staff.

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