The majority shareholder and former director of Dallas-based Provident Bancorp of Texas Inc. agreed to pay $6.5 million in capital to the ailing banking company under a Federal Reserve Board consent order.

Donald R. Horton signed the order without admitting or denying any allegations made by the Fed.

The order also requires him to pay a $100,000 civil penalty and $500,000 in restitution to Provident. It requires him to place into a voting trust his shares of Provident Bancorp as well as any shares subsequently acquired from Provident Bank.

"I definitely have my opinions, but the comment I have been advised to make is no comment," Mr. Horton said in a telephone interview. Officials with Provident Bank also declined to comment.

Under the agreement Mr. Horton will be banned from serving as a director or officer of any insured depository institution unless he is given the Federal Reserve's prior approval.

In a release issued July 12, the Fed alleged Mr. Horton had violated the Change in Bank Control Act, breached fiduciary duty and used unsafe or unsound practices to finance his acquisition of control of Provident and refinance his acquisition debt.

Provident has been plagued by loan problems over the years. Last year, the $184 million-asset bank lost nearly $1 million, according to Sheshunoff Information Services Inc. an Austin Texas-based bank and thrift rating firm. Nearly 10% of Provident's loans at year-end 1993. were nonperforming. In 1992 Provident earned $1.2 million.

The $6.5 million in capital Mr. Horton must pay Provident will be placed in a capital restoration plan that the Federal Deposit Insurance Corp. and the Texas Banking Department have approved, the Fed said.

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