The Federal Reserve on Tuesday announced a new written agreement while terminating an enforcement action with another bank.
Tennessee Valley Financial Holdings Inc. in Oak Ridge agreed to serve as a source of strength to its $173.3 million-asset TNBank, which has been operating under a consent order with it regulators since April 21.
Under the agreement, the company is barred from paying dividends or paying principal or interest on subordinated debt and trust preferred securities without Fed approval. The company must also secure Fed approval before taking on new debt.
Separately, the Fed said it had terminated a written agreement with State Bank Financial in La Crosse, Wis. The original agreement with the $303.4 million-asset company was reached in September 2010.
