WASHINGTON — Premier Financial Bancorp Inc. can't pay dividends without approval from regulators and must bolster its board oversight after the Federal Reserve took enforcement action against the bank Friday.
Premier Financial Bancorp, based in Huntington, W.Va., also controls Consolidated Bank & Trust Co. of Richmond, Va., and Abigail Adams National Bancorp in Washington, D.C. Premier acquired the D.C.-based bank in October of last year, according to the Abigail Adams website. At the time of the announcement, Premier was valued at $734 million.
Under the agreement with the Fed, the bank has to come up with a plan to strengthen board oversight and improve its earnings and budget for the remainder of the year, among other things. The Fed has to sign off before dividends can be paid.
The bank paid $0.11 per share in cash dividends to its common shareholders on June 30, according to a form filed with market regulators in late May.