The Federal Reserve Board has issued enforcement orders against two community bank holding companies requiring them to serve as sources of strength for their struggling bank subsidiaries.
Crown Bancshares in Edina, Minn., and Delmar Bancorp in Salisbury, Md., have been advised to use all their available resources to ensure that their bank units comply with the conditions of enforcement actions issued by the Federal Deposit Insurance Corp. and their respective state regulators. Among other things, the companies are prohibited from paying dividends to shareholders without Fed approval.
Crown is the parent of the $209 million-asset Crown Bank and Delmar is the holding company for the $437 million-asset Bank of Delmarva in Seaford, Del. Both banks are under orders to improve their capital ratios and reduce their levels of problem loans. Crown lost close to $7 million in 2011, according to FDIC data, and Delamarva lost around $3 million.
