Fed Takes Action Against Stonebridge of Pennsylvania

The Federal Reserve on Thursday announced a written agreement with Stonebridge Financial Corp. in West Chester, Pa.

Stonebridge agreed to serve as a source of strength to the $332 million-asset Stonebridge Bank, which has been operating under a consent order from regulators since May 19 and lost more than $5.8 million in the first half this year, according to Federal Deposit Insurance Corp. data. The holding company is barred from paying dividends or paying principal or interest on subordinated debt and trust preferred securities without Fed approval.

The company will also provide the Fed with a cash flow projection for the rest of the year.

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