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The Federal Reserve announced enforcement actions Tuesday for First Financial Service Corp. of Elizabethtown, the holding company that owns First Federal Savings Bank.
To ensure its stability, the company agreed not to pay dividends, incur or guarantee debt, or purchase any shares without prior approval from the Fed. The order also said First Financial will detail cash flow projections within 60 days, according to the statement.
The order was less detailed than a formal consent order with the Federal Deposit Insurance Corp. made public in January. The issues of concern to regulators resulted from failure of loans on a few high-end housing developments in Jefferson and Oldham counties
Keith Johnson, chief executive officer of First Federal, said the Fed’s conditions echo the FDIC agreed order.
“There are no new requirements,” Johnson said Tuesday.