Fed Ends Enforcement Actions with Marquette Financial, Bank of Virginia

The Federal Reserve Board has terminated enforcement actions with Marquette Financial in Minneapolis and Bank of Virginia in Midlothian.

The Fed ended its 2011 written agreement with the $947 million-asset Marquette on August 8, the regulator announced Thursday. The agreement required the company to improve its management of credit risk and methodology for accounting for bad loans, institute a conflict-of-interest policy for directors and employees and submit written plans to maintain sufficient capital and improve loan quality. The agreement also prevented Marquette from issuing dividends or taking on debt without the Fed's permission.

Marquette has two banking subsidiaries: the $691 million-asset Meridian Bank in Wickenburg, Ariz., and the $256 million-asset Meridian Bank Texas in Fort Worth. Both are well-capitalized, with Tier 1 leverage and total risk-based capital ratios in excess of required minimums.

The Fed terminated its 2010 written agreement with Bank of Virginia on August 8. That agreement required the $230 million-asset bank to improve board oversight, review its credit-risk policies, charge off bad loans and formulate a capital plan. It also prevented Bank of Virginia from paying dividends without Fed approval.

The bank had a Tier 1 leverage ratio of 5.4% and total risk-based capital of 11.45%.

In March, Cordia Bancorp completed its acquisition of Bank of Virginia through a share exchange. It had bought just under 60% of Bank of Virginia in 2010.