Consent orders with two bank holding companies in Minnesota – Mesaba Bancshares, Inc. (Grand Rapids) and First National Financial Services, Inc. (Elk River) – were terminated Thursday by the Federal Reserve Board, the Fed said in a release.
Both consent orders – executed in 2011 with Mesaba Bancshares and in 2010 with First National – directed the firms to act as a source of strength for their subsidiary banks, including (among other things) ensuring those subsidiary institutions complied with consent orders entered into previously with, respectively, the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC).
Mesaba Bancshares is the holding company for American Bank of the North (Nashwauk, Minn.), and First National Financial Services, Inc., is the holding company for First National Bank of Elk River (Maple Lake, Minn.). The banks entered into consent orders in 2011 and 2009 that addressed unsafe and unsound banking practices.