WASHINGTON — The Federal Reserve announced enforcement actions Tuesday against Bank of Virginia, moves taken to help maintain financial soundness at the company, according to the Fed order.
Under a written agreement, Bank of Virginia, based in Midlothian, cannot declare or pay any dividends without prior approval from the Fed, among other agreements reached.
The Fed also issued similar enforcement actions against Community Financial Holding Co., a registered bank-holding company based in Duluth, Georgia. Community Financial owns and controls Gwinnett Community Bank, and two other non-bank subsidiaries.
Community Financial cannot directly or indirectly take dividends or any other form of payment representing a reduction in capital from its bank.
Among other enforcement actions, Bank of Virginia and Community Financial must submit to Fed officials a written plan to maintain sufficient capital.