Federal Reserve ends enforcement action against First South Bancorp

An eight-year-old enforcement action against a South Carolina bank holding company has been terminated by the Federal Reserve, the central bank said Friday.

First South Bancorp of Spartanburg, S.C., entered into an agreement with the Fed in November 2010. Among other things, under the agreement, the banking company said it would not declare or pay any dividends without the prior written approval of the Fed, nor directly or indirectly take dividends or any other form of payment representing a reduction in capital from the bank it owns, First South Bank, also of Spartanburg, without the prior written approval of Fed.

The holding company and its nonbank subsidiary were also barred from making “any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval” of the Fed, according to the agreement.

Federal Reserve Board announces termination of enforcement action with First South Bancorp