Federal Reserve issues enforcement action on West Pointe Bancshares, Inc.

The Federal Reserve Board on Thursday announced the execution of the following enforcement action:

West Pointe Bancshares, Inc. Oshkosh, Wisconsin

Written Agreement dated July 15, 2011:

(a) WPBI shall not declare or pay any dividends without the prior written approval of the Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors (the “Director”).

(b) WPBI shall 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 of the Reserve Bank.

(c) WPBI and its nonbank subsidiary shall not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank and the Director.

(d) All requests for prior approval shall be received by the Reserve Bank at least 30 days prior to the proposed dividend declaration date, proposed distribution on subordinated debentures, and required notice of deferral on trust preferred securities. All requests shall contain, at a minimum, current and projected information on WPBI’s capital, earnings, and cash flow; the Bank’s capital, asset quality, earnings, and allowance for loan and lease losses; and identification of the sources of funds for the proposed payment or distribution.  For requests to declare or pay dividends, WPBI must also demonstrate that the requested declaration or payment of dividends is consistent with the Board of Governors’ Policy Statement on the Payment of Cash Dividends by State Member Banks and Bank Holding Companies, dated November 14, 1985 (Federal Reserve Regulatory Service, 4-877 at page 4-323).

The Federal Reserve Board also announced the termination of the enforcement action listed below: 

Alterra Bank (formerly known as 1st Financial Bank), Overland Park, Kansas

Written Agreement dated June 16, 2009

Terminated June 29, 2011

Search of Federal Reserve enforcement actions.

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