Regulators have prohibited Weststar Financial Services Corp. in Asheville, N.C., from paying dividends or reducing the capital at its bank unit without permission.
In a written agreement dated Dec. 9, the company agreed to "serve as a source of strength" for its main subsidiary, Bank of Asheville. At Sept. 30, the bank had a leverage ratio of 0.65%, a Tier 1 risk-based capital ratio of 0.82% and a total risk-based capital ratio of 1.63%.
The agreement also barred Weststar from incurring any additional debt or repurchasing stock without prior written approval from the Federal Reserve Bank of Richmond.
Weststar is required to submit written progress reports after the close of each quarter.
