Action against Alabama banking company terminated

A 2015 enforcement action with an Alabama bank holding company has been terminated, the Federal Reserve said Thursday. The three-year-old action was officially terminated Aug. 7. Under the enforcement action, Covenant Bancgroup, Inc., of Leeds, Ala., (which owns and controls Covenant Bank, also of Leeds) could not, among other things, declare or pay any dividends without the prior written approval of the Federal Reserve or the superintendent of the Alabama State Banking Department. The company also could not “directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without the prior written approval.”

Federal Reserve Board announces termination of enforcement action with Covenant Bancgroup, Inc.