The Federal Reserve on Thursday announced two written agreements and three civil money penalties.

The Fed reached a written agreement with Bank of the Carolinas Corp. in Mocksville, N.C., where the company agreed to serve as a source of strength to its $520 million-asset Bank of the Carolinas, which has been operating under a consent order from the Federal Deposit Insurance Corp. since April. The company also agreed to submit plans for raising capital and improving cash flow plan. At June 30, its bank was adequately capitalized with a 9.18% total risk-based capital ratio.

Pacific Commerce Bank in Los Angeles also reached a written agreement with the Fed, where the $186 million-asset bank agreed to file a plan to strengthen management, including oversight of credit risk, the loan portfolio, capital and earnings. The bank's board must also hire an independent consultant to assess senior management and operations. At June 30, about 4.5% of Pacific Commerce's total assets were nonperforming or in foreclosure; the bank's total risk-based capital ratio was 15%.

The Fed also announced three civil money penalty orders tied to violations of the National Flood Insurance Act. The highest penalty was $9,470 against Lindell Bank and Trust Co. in St. Louis, Mo. Whitaker Bank in Lexington, Ky., was fined $8,500 and Community State Bank in Poteau, Okla., was fined $7,130.

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