WASHINGTON — The Federal Reserve Wednesday announced a corrective action against BankFirst, a state chartered bank based in Sioux Falls, S.D. that the Fed has found to be "significantly undercapitalized."
The Fed said the bank has not filed a capital restoration plan that meets regulatory requirements.
That said, the order the Fed made public Wednesday directs the bank to immediately — no later than July 15 — increase equity through the sale of shares or contributions to surplus so that it meets capital regulatory requirements.
"The Bank must immediately take certain actions...due to the Bank's weakened capital position," the Fed said.