Lake Shore Bancorp in Dunkirk, N.Y., has entered into a written agreement with the Federal Reserve that bars it from making a number of capital-related moves without Fed approval.
The $700 million-asset company disclosed in a regulatory filing the new agreement follows a Feb. 9 consent order with the Office of the Comptroller of the Currency.
The company is no longer allowed to declare or pay dividends, repurchase stock, or issue debt without Fed approval. The agreement also oversees the process for adding directors and senior executive officers.
Lake Shore must also provide quarterly reports tied to its compliance with the written agreement.
The OCC order, which replaced a written agreement from the prior year, labeled Lake Shore’s bank as being in a “troubled condition.”
Lake Shore subsequently suspended its dividend and hired Kim Liddell, former chairman, president and CEO of Delmarva Bancshares as its president and CEO.