WASHINGTON - Unity Bancorp of Clinton, N.J., entered Friday into a written agreement with federal and state regulators to "restore and maintain" the financial soundness of its subsidiary, Unity Bank.
The Federal Reserve Bank of New York and the New Jersey Commissioner of Banking and Insurance gave management of the, a $409 million-asset company 45 days to present a plan to restore capital to sufficient levels and to prevent the bank from becoming undercapitalized again.
Unity's directors are also required to hire a consultant to examine whether personnel outlays, including salaries, bonuses, fees, and reimbursements, were paid for actual services rendered.
The bank is barred from large expenditures, including the payment of dividends, until the order is lifted by the Fed and the State Banking Commissioner.
