Many smaller banks say they plan to keep offering such services because demand is strong and overdraft fee income is essential.

United Community Banks Inc. entered an agreement to sell $100 million of nonperforming loans to an asset manager in order to rid illiquid assets and create new capital as the bank continues to suffer from credit crunch.

The Federal Reserve announced an enforcement action against Atlantic Bancgroup in Jacksonville Beach, Fla., a move taken to help maintain financial soundness at the firm.

Privately held banks that took Tarp capital are considering exit strategies now — even though the cost of the funds won't rise for another four years. But an inability to tap public markets may mean these companies will need more time to raise the money.

MIDWEST

How individual banks decide to evolve will vary. Some will redefine the functions of their branches. Some will reduce branches. Some will choose to add branches. Whatever the strategy, the increased role of technology will be undeniable.

The future of two large community banks in the Midwest is in jeopardy after regulatory orders that require the banks to raise capital quickly or find a buyer.

In the order, formally known as a "Prompt Corrective Action Directive," the Fed laid out several actions, as outlined in the Federal Deposit Insurance Act, that the bank must take promptly to address its financial challenges.

The Federal Reserve Bank of St. Louis announced Tuesday it had entered into a written agreement with BankTennessee Bancshares Inc. and its subsidiary to improve its loan quality and tighten lending standards.

Working out a problem loan is never easy, but it becomes quite a bit tougher when a troubled bank is the only underlying collateral.

Orrstown Financial Services Inc. in Shippensburg, Pa., announced that it had raised $40 million in a public offering. The $1.2 billion-asset company said Monday that it sold 1.48 million shares of common stock for $27 a share, a 24.3% discount to its closing price on March 15.

Citizens Bancshares Corp. of Atlanta announced that its earnings declined 30% in 2009. The $388 million-asset company said Monday that its earnings dipped to $715,000, from $1 million in 2008.

A credit union public funds bill has been signed into law by Oregon Gov. Ted Kulongoski, removing a $250,000 ceiling on public fund deposits a credit union can hold.

BofI Holding Inc. in San Diego has announced plans to raise $13.19 million in a public stock offering. The $1.4 billion-asset company, whose business niche is providing banking services over the Internet, priced the offering of 1.066 million shares at $13 per share on Tuesday, 7% under its stock's Monday closing price of $14.

Amid concerns about its future, Amcore Financial Inc. in Rockford, Ill., said it had sold 12 branches and two stand-alone drive-up sites of its main subsidiary, Amcore Bank.

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The vast majority of credit unions no longer permit credit-card holders to exceed their credit limits, according to The Members Group.

Arrow Financial Corp. in Glens Falls, N.Y., said it has a deal to buy the area insurance firm Loomis & LaPann Inc. for an undisclosed price.