The Federal Reserve this week took action against four banks, including three written agreements and the issuance of a prompt corrective order against Bank of the Eastern Shore.

Regulators gave the Cambridge, Md., bank 60 days from Aug. 8 to become adequately capitalized or sell itself. The $181.2 million-asset bank was undercapitalized at June 30, with a Tier 1 risk-based capital ratio of 4.71% and a leverage ratio of 3.83%. Bank of the Eastern Shore has operated under a written agreement since August 2010.

Mesaba Bancshares Inc. in Grand Rapids, Minn., reached a written agreement with the Fed, agreeing to serve as a source of strength to its $637.7 million-asset American Bank of the North. The bank has been operating under a consent order with regulators since April 25. The company was barred from paying dividend or incurring debt and must file a plan to maintain sufficient capital.

Reliance Bancshares Inc. in Des Peres, Mo., reached a written agreement where it must serve as a source of strength for its $1.15 billion-asset Reliance Bank, which has been operating under a consent order since Feb. 14. The company was barred from paying dividends or taking on new debt without regulatory approval. The Fed also gave the company 90 days to submit a plan for having sufficient capital.

Finally, the Fed ordered the $31.6 million-asset Texas Coastal Bank in Pasadena to provide written plans to improve board oversight, credit risk management practices, and loan and credit administration policies.

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