The Federal Reserve Board on Thursday announced it has terminated an enforcement action involving Porter Bancorp, Inc., in Louisville, Ky.
This bank holding company entered into an agreement in 2011 with the St. Louis Federal Reserve Bank directing that its board ensure the bank’s compliance with a consent order issued jointly by the Federal Deposit Insurance Corp. (FDIC) and the Commonwealth of Kentucky Department of Financial Institutions June 24, 2011.
The agreement with the Fed, dated Sept. 21, 2011, required the bank to take steps to build and maintain minimum capital levels; obtain approval of the St. Louis Fed prior to declaring or making any dividend payments or other distributions, and prior to redeeming stock or incurring, increasing or guaranteeing debt; and to submit cash flow projections. The agreement also addressed notice required for changes in directors or senior executive officers; and regulatory restrictions on indemnification and severance payments.
Federal Reserve Board Announces Termination of Enforcement Action
2011 Agreement between Federal Reserve Bank of St. Louis and Porter Bancorp, Inc.