Millennium Bankshares Corp. in Reston, Va., signed a regulatory enforcement agreement prohibiting it from paying cash dividends to shareholders without approval from the Federal Reserve Bank of Richmond.
The $381 million-asset Millennium said Wednesday that it stopped paying its quarterly dividend of 2 cents a share after the second quarter of last year, and that it has no plan to pay a cash dividend until its earnings improve.
The agreement also requires Millennium to get approval before adding directors to its board, hiring senior executives, making its quarterly interest payment on its trust-preferred securities and related debentures, or repurchasing stock.
It also agreed to not incur, increase, or guarantee any debt without the Richmond Fed's approval.
The agreement is the second Millennium has signed with a regulator this year. An enforcement order signed in January with the Office of the Comptroller of the Currency requires its Millennium Bank to improve capital levels and establish various risk-based policies, rules, and long-term strategic goals.
