MidSouth Bank in Murfreesboro, Tenn., was well capitalized at the end of the second quarter and the Federal Reserve wants to make sure it stays that way.
Last week the regulator disclosed a July 28 written agreement with the $250 million-asset bank, which gives MidSouth 60 days to submit a plan detailing how it would maintain adequate capital.
At June 30, MidSouth had a total risk-based capital ratio of 13.3%.
The agreement also calls for MidSouth to submit plans to strengthen board oversight, improve credit risk management and asset quality, among other things.
The order also requires it to submit a plan to correct information technology practices.