Regulators have told Randolph Bank & Trust in Asheboro, N.C., that it is forbidden from paying scheduled dividends — including a dividend to the U.S. Treasury Department on its Troubled Asset Relief Program investment — until further notice.
The $297 million-asset bank is not subject to any enforcement actions, Randolph said in a disclosure filed on Friday with the Federal Deposit Insurance Corp.
The FDIC denied Randolph's request to pay a dividend this month on two series of preferred stock, and a dividend next month on its $6.2 million Tarp investment. Randolph did not provide an explanation for the FDIC's order. Randolph has already missed three Tarp dividend payments, according to Keefe, Bruyette & Woods.
Randolph posted a $312,659 loss in the second quarter, compared to net income of about $100,000 a year earlier. The results exclude effects from dividends and accretion on preferred stock. The results were affected by a larger provision for loan losses, about $1.1 million, compared to the previous year's provision of $406,000.
