The Federal Reserve announced an enforcement action against Atlantic Bancgroup in Jacksonville Beach, Fla., a move taken to help maintain financial soundness at the firm.

Under a written agreement, Atlantic Bancgroup cannot declare or pay any dividends without prior approval from the Fed.

The bank holding firm also cannot directly or indirectly take dividends or any other form of payment representing a reduction in capital from its state-chartered Oceanside Bank.

Atlantic Bancgroup also cannot incur, increase or guarantee any debt without prior written approval from the Fed and it must submit written progress reports 30 days after each quarter ends.

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