Lawrence-based Peoples Bank has two months to deliver a written plan for improving the bank’s “earnings and overall condition,” after being cited by federal banking regulators for underperforming business and other loans.

The $300 million bank is the 33rd in Kansas and the fourth with locations in Lawrence — joining University National Bank, Central National Bank and CornerBank — to face regulators’ orders to strengthen their financial conditions.

The Federal Reserve Bank of Kansas City released its 14-page written agreement Monday, outlining a series of management conditions, reporting standards, financial limitations and planning requirements designed to maintain the financial soundness of the bank.

The agreement mentioned a June bank examination that criticized selected loans and credit extensions. In 2009, the bank had loan chargeoffs of more than $4.9 million.

Wint Winter Jr., president and CEO of Peoples Bank, said that company shareholders had contributed $2.5 million of additional capital last year to boost the “capital cushion” for the bank, whose future he considers “very bright.”

Last year the bank reported record operating income, of $7.4 million, and improved its net liquidity by $31.3 million, Winter said.

“We’ve made substantial progress and we’re very pleased with our improved safety and soundness,” Winter said, in a statement. “We’re proud to be a responsible, family-owned community bank. We gather deposits and lend money locally. We’ve never accepted TARP funding. We don’t make subprime real estate loans.

“This agreement reflects the effects of unique local financial challenges experienced over the last couple of years by many of our business and consumer guests. Because of our close proximity and relationship with these guests, at times their challenges become ours.”

Peoples provides banking, mortgage and investment services at 15 locations, including three in Lawrence.