WASHINGTON — The Federal Reserve said Thursday it has restricted dividend payments by three private banks, one of which received a $2.4 million taxpayer bailout.
The Fed ordered CSRA Bank Corp., based in Wrens, Ga., not to declare or pay dividends without its prior approval.
The bank, which received money from the government's financial sector bailout and is the subject of a separate enforcement action by the Federal Deposit Insurance Corp., also is being required to provide regular progress reports to the Fed.
The Fed entered similar agreements with First Bancshares Inc. — the holding company for First National Bank of Cold Spring, Minn. — and Guaranty Development Co., based in Livingston, Mont.
Guaranty, which operates the Bozeman, Mont.-based American Bank, also is being told to strengthen its capital position and credit risk management practices.