The Federal Reserve on Tuesday announced written agreements with two banking companies.
Alliance Financial Services Inc. in St. Paul, Minn., agreed to serve as a source of strength to its $620 million-asset Alliance Bank, which has been operating under a consent order with the Federal Deposit Insurance Corp. and its state banking regulator since July 7. The company was barred from paying dividends without the Fed's blessing and it will need regulatory approval to pay principal and interest on its subordinated debt. The agreement also requires that the company supply the Fed with a written plan to maintain sufficient capital.
Patriot Bancshares Inc. in Houston and Patriot Holdings Nevada Inc. in Reno agreed to serve as a source of strength to the $1.26 billion-asset Patriot Bank, which has been operating under a consent order from the FDIC and the Texas Department of Banking since May 13. The companies are prohibited from paying dividends or from issuing new debt without regulatory approval. Patriot Bancshares was required to provide a written plan for having sufficient capital.