The Federal Reserve has ordered First Heritage Corp. in Carthage, Miss., to step up its role as a source of strength for its bank unit.
On Wednesday, the regulator released a Sept. 23 written agreement with the $238 million-asset company. It calls for it to help its Heritage Banking Group unit fulfill requirements laid out in a May consent order with state and federal regulators.
The agreement also prevents the company from paying dividends to or collecting dividends from the bank unit. It is also barred from incurring any additional debt without permission from the Fed. As of June 30, its bank was undercapitalized with a total risk-based capital ratio of 7.82%.