Stonebridge agrees to Fed’s restrictions

Posted: September 08, 2011

Stonebridge Financial Corp., the parent of Stonebridge Bank in Exton, entered a restrictive agreement with the Federal Reserve Bank of Philadelphia designed to conserve financial resources for the bank, which has lost $10.8 million over the last four quarters and has seen its equity decline by $18 million, or 46 percent, in that period.

The agreement, dated Sept. 1 but released Thursday, prohibits privately held Stonebridge Financial from paying dividends or redeeming stock or debt without permission from the Fed, which regulates bank holding companies.

The Fed agreement is in addition to a May consent order with the Federal Deposit Insurance Corp. and the Pennsylvania Department of Banking.

Since June 2010, Stonebridge's deposits have fallen 16 percent, to $267 million, and its net loans have fallen 23 percent, to $239 million.    -Harold Brubaker

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