The Federal Reserve Bank of Atlanta has ordered First St. Charles Bancshares Inc. in Boutte, La., to use whatever resources necessary to ensure that its bank subsidiary, First National Bank USA, remains well capitalized.

The written agreement signed Dec. 21 and released Tuesday also: prohibits the $141 million-asset First St. Charles from paying dividends or appointing new executives without Fed approval; requires the company to submit progress reports on the company's financial condition within 45 days after the completion of each quarter; and requires First St. Charles to ensure that its bank unit continues to comply with a consent order it entered into with the Office of the Comptroller of the Currency in August 2010.

Plagued by losses on real estate loans, First National reported losses of more than $13 million for the three years that ended Dec. 31, 2010, according to Federal Deposit Insurance Corp. data. The bank is considered to be well capitalized — its total risk-based capital-to-assets ratio was 16.53% at Sept. 30 — but past-due loans remain a concern. At Sept. 30, more than 8% of its loans were at least 90 days past due, according to the FDIC.

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