Regulators are barring a Minnesota bank holding company from paying shareholders and some creditors until it takes steps to boost its capital.
VFSC, Inc., the parent of $350 million-asset Voyager Bank of Eden Prairie, Minn., has 60 days to detail both the adequacy of its capital and its current and future capital needs, according to an agreement between the company and the Federal Reserve Bank of Minnesota entered into Thursday and released Tuesday.
The holding company has to refrain from declaring dividends, repaying loans from insiders or incurring any additional debt without the Fed's permission. VFSC has two months to detail the sources of its cash and to tell the Fed how it plans to meet its financial obligations and cover the cost of its operations.
At June 30, Voyager Bank's core capital (leverage) ratio was 8.68%, and its total risk-based capital ratio was 10.85%, according to the Federal Deposit Insurance Corp.