Silverton Financial Services Inc. in Atlanta has been barred from paying dividends without the Federal Reserve's approval under an agreement with the regulator disclosed Monday.
The agreement, which was signed April 2, also requires the $3.1 billion-asset correspondent banking company to create a capital plan for itself and its subsidiaries.
Last week, Tom Bryan, who was the president and chief executive officer of the company and its banking subsidiary, and Earl Howell, the chief operating officer of the two entities, resigned. Christopher Maddox was appointed interim president and CEO.
The company's Silverton Bank received a consent order from the Office of the Comptroller of the Currency on Feb. 26, which requires the unit to increase its capital ratios and devise a plan to better manage risk, among other things.
At the end of 2008 the bank's Tier 1 risk-based capital ratio was 8.57%. Though regulators typically consider a bank with a Tier 1 risk-based capital ratio of 6% to be well capitalized, the order gave the bank 150 days to boost its ratio to 11%.
