The Federal Reserve Board entered into a written agreement with Macon Bancorp that requires the Franklin, N.C., company to serve as a source of strength to its bank.

The agreement also prevents the $847 million-asset parent of Macon Bank from declaring or paying dividends or repurchasing stock without approval from the Federal Reserve. Macon has to submit a plan to maintain sufficient capital and a statement of its planned sources and uses of cash for debt service and operating expenses.  

Macon Bank's core capital leverage ratio was 6.46% and its total risk-based capital ratio was 10.56% at March 31.

The agreement was reached last week and the Federal Reserve announced it on Tuesday.

The Fed also said Tuesday that it had terminated a written agreement with Premier Financial Bancorp in Huntington, W. Va., and two of its banks, Abigail Adams National Bancorp in Washington, D.C., and Consolidated Bank and Trust in Richmond, Va. Premier had consolidated several banks, including Abigail Adams and Consolidated, last year under the brand of Premier Bank.

The agreement was from July 2010.

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