The Federal Reserve on Tuesday announced a written agreement with Cornerstone Holding Co. in Fargo, N.D.

The company agreed to serve as a source of strength to its $265.4 million-asset Cornerstone Bank, which has been operating under a consent order with the Federal Deposit Insurance Corp. since Aug. 23.

Cornerstone is also prohibited from paying dividends or paying principal or interest on subordinated debt and preferred stock without regulatory approval.

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