WASHINGTON — The Federal Reserve announced enforcement actions Friday against North Valley Bancorp of Redding, Calif.
Under a written agreement, North Valley — a registered bank holding company — can't directly or indirectly extend or renew credit to any borrower. Under the agreement, North Valley can't declare or pay dividends without prior approval from the Fed. The firm also can't directly or indirectly take dividends or any other form of payment that would represent a reduction in capital from its state-chartered bank.
The firm also must submit to Fed officials a written plan to maintain sufficient capital, along with a plan to strengthen the bank's management of commercial real estate holdings.