The Federal Reserve on Thursday announced that it has reached a written agreement with SWNB Bancorp Inc. in Houston.
SWNB agreed to serve as a source of strength in support of its $325.8 million-asset Southwestern National Bank in Houston and its $37.5 million-asset Nevada National Bank in Las Vegas. Southwestern has been operating under a consent order from regulators since March 24, while Nevada National reached a formal agreement with regulators in August 2010.
SWNB was barred from paying dividends or paying interest and principal on subordinated debt and trust preferred securities without Fed approval, among other things. The company also agreed to provide the Fed with a cash flow projection covering the rest of this year.