Heritage Financial Group in Albany, Ga., is revising its fourth quarter and 2009 results after selling off its largest nonperforming loan.

First Midwest Bank in Itasca, Ill., wants to make it perfectly clear — it is not to be confused with Midwest Bank and Trust Co.

Add Independent Bank in Ionia, Mich., to the list of companies that have successfully renegotiated the Treasury Department's investment under Tarp.

NEW YORK — Uncle Sam could soon own a piece of Independent Bank Corp. The Michigan lender disclosed in a filing Friday it has paved the way for the Treasury Department to convert into common shares the $72 million the government invested in the bank through the Troubled Asset Relief Program, or Tarp.

The Federal Reserve released written agreements with banks in Missouri and Florida on Thursday, limiting the firms' ability to pay dividends and boosting oversight of their operations.

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

A research note from Sandler O'Neill & Partners LP last week said the $1.3 billion-asset company was required to increase capital levels, reduce problem assets, reduce exposure to construction and land loans and create a liquidity management plan.

The president of Frontier Financial Corp.'s bank unit said he was fired for trying to use vacation time.

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.