The Federal Reserve has reached a written agreement with Central Bancorp Inc. in Garland, Texas.

Under terms of the agreement, the company agreed to serve as a source of strength to its $2.4 billion-asset United Central Bank, which has been operating under a consent order with its regulators since September.

Central Bancorp was also barred from paying dividends without Fed approval. The company was also prohibited from incurring new debt without regulatory approval.

The company also agreed to provide regulators with an "acceptable written plan to maintain sufficient capital" and quarterly progress reports.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.