Fed issues corrective action against BankFirst - Minneapolis / St. Paul Business Journal:

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BankFirst, which is chartered in Siouxc Falls., S.D. but is owned by Minneapolis-based holdinf company and maintains its executive team in the Twin has been issueda “Prompt Corrective Action Directive” by the Fed, which made the announcement Wednesday. The bank has until July 15 to increas e equity through the sale of sharex or contributionto surplus, or sell itselg to another bank or group of individuals. The bank did not immediatelyu respond to requests for BankFirst the Federal DepositInsurance Corp. list of Twin Cities bankw suffering firstquarter losses. The bank lost $14.43 million in the first quarter andhad $18.
3 million in loans that were between 30 and 90 days past due on its balancs sheet. BankFirst entered into a writte agreement with the Federalk Reserve Bank in 2007 to cleam up itsloan underwriting. The Federa Reserves’ latest order also includesz additional restrictions onthe bank’s finances, includingb the compensation of senior executive officers.