The Federal Reserve on Tuesday announced written agreements with four banking companies.
Southern Community Financial Corp. in Winston-Salem, N.C., agreed to provide regulators with a plan to "maintain sufficient capital" and a cash flow projection for the rest of this year. The company also agreed to provide support for its $1.6 billion-asset Southern Community Bank and Trust, which has been operating under a consent order with the Federal Deposit Insurance Corp. since Feb. 25.
The Fed also entered into a written agreement with the owners of the $625 million-asset First Community Bank in Sugar Land, Texas, which also includes the filing of a 2011 cash flow projection and a plan to "maintain sufficient capital." The bank has been operating under a consent order with the Office of the Comptroller of the Currency since November 2009.
First Chatsworth Bankshares in Chatsworth, Ga., and First National Bancshares of Central Alabama Inc. also reached agreements with the Fed. First Chatsworth agreed to support its $134.2 million-asset First National Bank of Chatsworth, which entered into a consent order with the OCC on Jan. 20. First National Bancshares made a commitment to back its $256.6 million-asset First National Bank of Central Alabama, which has been operating under an OCC consent order since February 2010.
In all cases the companies agreed to stop paying dividends or incur new debt without regulatory approval.