The Federal Reserve announced enforcement actions Tuesday against Bank of Virginia.

Under the Jan. 13 written agreement, the $226.3 million-asset bank has 60 days to submit a plan to hold sufficient capital.

The plan must take into account the Midlothian bank's allowance for loan losses and its concentrations of credit risk.

Among other things, the order prevents the bank from declaring or paying dividends without prior approval from the Fed.

In a press release Tuesday, Bank of Virginia reported that it was well capitalized by regulatory standards after raising an additional $4.6 million in capital late last year through a common stock offering.

"Bank of Virginia has been very proactive, as we have allocated significant resources to identify and address issues in our commercial real estate loan portfolio," said Frank Bell, the president and chief executive. "Many of the items of concern have already been remediated."

Bank of Virginia did not provide its yearend capital ratios.

At the end of the third quarter the bank was adequately capitalized.

As of Sept. 30, it reported total risk-based capital ratio of 8.86%, according to data from the Federal Deposit Insurance Corp.

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