Unless Michigan Heritage Bank improves its capital position by April 15, it must sell more shares of stock or find a buyer, the Federal Reserve Board said Tuesday.
Using its prompt corrective action authority, the Fed said the $181.6 million-asset Farmington Hills bank is "critically undercapitalized."
As Michigan Heritage rights itself or finds a buyer, the central bank is barring it from paying dividends.
In December Michigan Heritage signed an agreement with the Fed that required the bank to charge off losses identified by examiners and submit a business improvement plan through repayment amortization, liquidation, additional collateral or other means.
