March 25, 2010 / 3:38 PM / 7 years ago

US Fed halts dividends at United Security Bancshares

WASHINGTON, March 25 (Reuters) - The Federal Reserve on Thursday ordered United Security Bancshares (UBFO.O), the parent of United Security Bank, to halt payment of dividends and to submit a plan to meet capital adequacy guidelines.

In a written order between the Federal Reserve Bank of San Francisco and United Security Bancshares, the Fed said the bank could not pay any dividends or make any other payments that would reduce the bank's capital without the Fed's consent.

The bank will also have 60 days to submit a plan to improve its capital base, taking into account allowances for loan and lease losses, concentration of credit, and projected retained earnings, the Fed said.

United Security Bancshares is based in Fresno, Calif. (Reporting by Nancy Waitz, Editing by Chizu Nomiyama)

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