SouthPoint Bancshares Faces Regulatory Crackdown

The Federal Reserve and Alabama banking regulators have taken formal enforcement action against SouthPoint Bancshares. The parent company of the bank has been ordered to preserve capital, develop a plan to support the bank, and obtain approval before paying dividends or taking on additional debt.

The action requires a capital plan within 60 days, as regulators continue to oversee the bank under a separate consent order issued last year.