The Federal Reserve announced an enforcement action Thursday against First Banking Center Inc. of Burlington, Wis., to help maintain financial soundness at the company, according to the Fed order.
Under a written agreement, First Banking cannot declare or pay dividends without approval from the Fed. The company also cannot take dividends or any other form of payment representing a reduction in capital from its state-charted bank, First Banking Center.
The central bank also announced action it took against registered bank holding company West Tennessee Bancshares Inc. and its Bank of Bartlett. Tennessee Bancshares is subject to a similar enforcement action as First Banking. The bank holding companies also cannot incur or increase or guarantee any debt without prior written approval from the Fed.
