Seaway Bank and Trust in Chicago has entered into a consent order with state and federal regulators.

The agreement directs the $522 million-asset Seaway to improve its loan quality and financial condition, including a directive to increase its Tier 1 capital to 8%, the company said in a press release Friday.

"Like many other community banks, Seaway ... continues to feel the effects of a soft economic recovery following the 'Great Recession,'" Veranda Dickens, the bank's chairman, said in the release.

The order, which went into effect Dec. 16, was issued by the Federal Deposit Insurance Corp. and the Illinois Department of Financial and Professional Regulation.

Seaway has 11 branches, mostly around Chicago.

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