The Federal Reserve Bank of Kansas City, Mo., has struck an agreement with Valley Bank and Trust of Brighton to restrict the Colorado bank’s dividends and debt growth, according to enforcement records.
The Federal Deposit Insurance Corp. had placed the bank under a cease-and-desist order this summer for violating federal regulations.
Under the new agreement with the Fed, officials must obtain approval before paying out dividends and incurring additional debt. The bank also must submit reports on its progress in complying with the agreement within 30 days after each calendar quarter.
Valley Bank and Trust, reporting about $260 million in assets, has closed four unprofitable branches during the past two years. It was cited by the FDIC for “creating concentrations of credit,” along with five other unsafe practices.
