The Federal Reserve Board said it has reached a written agreement with Westside Banking Co. of University Place, Wash.
Westside agreed on Monday to serve as a source of strength to the $148.3 million-asset Westside Community Bank, which has been operating under a consent order with the Federal Deposit Insurance Corp. and the Washington Department of Financial Institutions since Sept. 24.
Westside was also barred from paying dividends or paying interest or principal on subordinated debt and trust-preferred securities without approval from the Federal Reserve, according to a press release.
Separately, the Fed issued consent orders of assessment that included civil money penalties against two banks. The penalties were based on alleged violations tied to implementing the National Flood Insurance Act.
Dacotah Bank in Aberdeen, S.D., with assets of $1.8 billion, agreed to pay a $10,995 civil penalty.
Franklin Savings Bank, a $320 million-asset thrift in Farmington, Maine, agreed to pay $5,160.
The payments will go to the National Flood Mitigation Fund. Neither bank admitted or denied wrongdoing.