The Federal Reserve said Thursday that it has restricted dividend payments by three banks, one of which got $2.4 million through the Treasury Department's Troubled Asset Relief Program.
The Fed ordered CSRA Bank Corp. in Wrens, Ga., not to declare or pay dividends without receiving prior approval from the central bank.
The $100 million-asset Georgia bank, which got Tarp funds and is the subject of a separate enforcement action by the Federal Deposit Insurance Corp., must prepare regular progress reports and submit them to the Fed.
The Fed entered into a similar agreement with First Bancshares Inc., the holding company for the $84 million-asset First National Bank of Cold Spring, Minn.
It also announced that it has an agreement with Guaranty Development Co. in Livingston, Mont.
Guaranty, which operates the $391 million-asset American Bank in Bozeman, Mont., also is being required to strengthen its capital position and credit risk management practices.