WASHINGTON — Citizens Effingham Bancshares Inc. of Springfield, Ga., can't pay dividends without approval from regulators and must take steps to improve its financial soundness after the Federal Reserve took enforcement action against the bank Monday.
Under an agreement with the Fed, Citizens Effingham and its one nonbank subsidary also can't make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities without the Fed's approval.
Separately, the Fed also took enforcement action Monday against Oregon Pacific Bancorp, a bank holding company, and its bank subsidary Oregon Pacific Bank. Under the agreement with the Fed, the Florence-based bank has 60 days to come up with a plan to strengthen board oversight and reduce the risk posed by a high concentration of commercial real estate in its portfolio, among other things.
The agreement gives Oregon Pacific 10 days to wipe off its books all assets deemed losses by regulators. It also can't pay dividends without Fed approval.
