The Federal Reserve Board has entered into written agreements with four community banks and their holding companies.
First Community Bank in Glasgow, Minn., agreed to provide regulators with a written plan "to strengthen" board oversight of management and to improve control over lending, capital and liquidity, among other things. The bank has 60 days to file a plan with regulators.
Separately, the Fed entered into written agreements with First National Community Bancorp Inc. in Dunmore, Pa.; Oxford Financial Corp. of Oak Brook, Ill.; and Ridgestone Financial Services Inc. in Brookfield, Wis. The accords were announced Thursday.
The banking companies agreed to serve as sources of strength for their banks. Each company is prohibited from paying dividends or paying principal on subordinated debt or trust-preferred securities without approval from the Fed.
