A Richmond, Va., bank holding company that has yet to report a profit in its five-year history has been ordered to review its financial controls and corporate governance practices.
Under a memorandum of understanding with the Federal Reserve Bank of Richmond, TransCommunity Financial Corp. must create a panel of directors that would also review staff levels and submit quarterly status reports to the Richmond Fed.
TransCommunity, which has $174 million of assets, has not reported its fourth-quarter or 2005 results.
Through the first nine months of 2005 it lost $1.15 million.
The company first disclosed the memorandum of understanding in a filing with the Securities and Exchange Commission Monday.
It is the parent of three Virginia community banks: Bank of Powhattan, Bank of Goochland, and Bank of Louisa.
In November, TransCommunity announced plans for a fourth unit, Bank of Rockbridge, to be headquartered in Lexington.
At the end of December, William C. Wiley, who had been chief executive since June 2001 and chairman since January 2004, left the company.
Troy A. Peery, a director since 2002, succeeded him as chairman; Bruce B. Nolte, who had been president, took over as CEO.
