The Federal Reserve Board has taken action against two banks and terminated orders with four others, and the Federal Deposit Insurance Corp has freed Synovus Financial (SNV) from an order.
The Fed entered a written agreement with Commerce Bank and Trust Holding in Topeka, Kan., that requires the $997 million-asset company to submit a capital plan and prevents it from paying dividends or increasing debt without regulatory approval. CoreFirst Bank & Trust, Commerce's bank, had a Tier 1 leverage ratio of 7.8% on March 31, according to the FDIC.
The Fed board also entered into a written agreement with Riverview Bancorp in Vancouver, Wash., requiring the $775 million-asset company to submit reports and forbidding it from paying dividends without approval.
The Fed board also said Thursday that it has terminated written agreements with Border Bancshares in Greenbush, Minn.; Border Capital Group in McAllen, Texas; CIT Group in New York; and Market Bancorp in Elk New Market, Minn.
Separately, the FDIC and the Georgia Banking Commissioner freed Synovus' bank from a 2010 memorandum of understanding, the $25.9 billion-asset company disclosed in a Thursday filing with the Securities and Exchange Commission. The termination of the order was effective May 29.
The Columbus, Ga., company's MOU required the company to form plans to minimize loan losses, obtain permission before paying dividends and take steps to minimize customer confusion over it bank's various trade names.
Synovus agreed to buy a failed bank last week, despite owing roughly $968 million under the Treasury Department's Troubled Asset Relief Fund. The company returned to profitability in 2011 and has started looking for M&A opportunities, Chief Executive Kessell Stelling said last month.