The Federal Reserve Board has entered into written agreements with two companies requiring them to serve as sources of strength for their banks.
Under the agreements, the $306 million-asset Frontier National in Chelsea, Ala., and One Financial in Little Rock, Ark., cannot declare or pay dividends or repurchase stock without approval from the Federal Reserve. The banks also must submit written statements of their planned sources and uses of cash for debt service and operating expenses.
At March 31, noncurrent loans for the $457 million-asset One Bank & Trust totaled 5.53%, up from 2.82% a year earlier, according to the Federal Deposit Insurance Corp. Its core capital (leverage) ratio was 8.54% and its total risk-based capital ratio was 12.83%.
At March 31, Frontier Bank's noncurrent loans totaled 17.52%, up from 8.6% a year earlier, according to the FDIC. Its core capital (leverage) ratio totaled 2.34% and its total risk-based capital was 4.87%.
The Fed announced the agreements Thursday.