WASHINGTON, June 29 The Federal Reserve Board
said on Tuesday it has prohibited OptimumBank Holdings Inc
(OPHC.O) of Fort Lauderdale, Florida, from paying dividends or
taking on new debt without written approval from the Federal
Reserve Bank of Atlanta.
In a written agreement with the Atlanta Fed, the firm
agreed to take steps to utilize its financial and managerial
resources fully to "serve as a source of strength" to its
banking subsidiary, OptimumBank, of Plantation, Florida. It
also agreed to ensure that it complies with consent orders with
the Federal Deposit Insurance Corp and the Florida Office of
Financial Regulation issued in April.
The Fed regularly publishes such written agreements with
bank holding companies to ensure their safety and soundness,
but does not state specific reasons for the remedial actions it
OptimumBank in April restated its results for 2009,
increasing its after-tax loss for the year to $11.48 million
from $8.48 million stated previously. The company attributed
the increase to a $1.3 million increase in its loan loss
prevision, resulting in a new assessment of its loan portfolio
at year end, coupled with a $1.6 million decrease in tax
The company had $272.8 million in assets at year-end and
three banking branches in Broward County, Florida.
(Reporting by David Lawder; Editing by Dan Grebler)