The Federal Reserve on Tuesday announced that it has reached a written agreement with Coastal Bankshares Inc. in Savannah, Ga.

The company agreed to serve as a source of strength to its $430.8 million-asset Coastal Bank, which has been operating under a consent order with the Federal Deposit Insurance Corp. since May 26.

The company was barred from paying dividends or paying interest or principal on its subordinated debt and trust preferred securities without Fed approval. The company was also prohibited from taking on new debt without securing regulatory approval.

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