Loading ...*Update* More Problems for Horizon Bank in Pine City
The Federal Reserve Bank of Minneapolis issued enforcement actions against three state banks, including the Pine City Bancorporation Inc. (PCB), which owns Horizon Bank in Pine City. Written agreements signed by the banks were made public, Tuesday.
Under the agreement, PCB is not to declare or pay any dividends without the prior written approval of the Reserve Bank, shall not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without prior written approval.
The bank also needs written approval to make distributions of interest, principal, or other sums on subordinated debts or trust preferred securities. Horizon is not to incur, increase, or guarantee any debt without approval from the Reserve Bank.
Read the Entire Agreement Here
According to the Star Tribune, Horizon bank lost $3 million last year.
Last month the FDIC issued cease-and-decist orders for the Pine City bank. The FDIC says Horizon is engaging in “unsafe or unsound business practices.” Following the FDIC order in February, the bank sent out letters to customers assuring their money was safe.
Wednesday, Horizon acting CEO Tom Palmer issued a comment, “nothing has changed.”