Hometown Bancshares Inc. of Carthage, Mo., must take a number of steps to ensure financial soundness at its bank, according to an enforcement action the Federal Reserve Board released Monday.
Under the agreement, Hometown Bancshares cannot declare or pay any dividends without getting approval first from the Fed. The company also cannot incur, increase or guarantee any debt without the central bank's approval.
Among other things, Hometown Bancshares must submit to the Fed a so-called cash flow projection for the year — a written statement of planned sources and uses of cash for debt service, operating expenses and other purposes.
