Ozarks bank agrees to cease-and-desist order

First Bancshares Inc., the holding company for Mountain Grove-based First Home Savings Bank, agreed to a cease-and-desist order from the Office of Thrift Supervision, the company announced Tuesday.

According to the announcement, the orders are a formal action requiring the company and bank to take a number of corrective measures, including:

• the preparation of a business plan for improving earnings and preserving and managing the bank's capital resources;

• reducing classified assets and improving the assets classification policy;

• reducing commercial real estate and other loan concentrations;

• discontinuing any stock repurchase programs; and

• restricting the payment of dividends and additional incurred debt.

No fines or penalties are imposed as part of the agreement.

"The current economic environment continues to be a challenge for the company and the bank, as it is for all financial institutions," company President Lannie E. Crawford said in a news release. "We have focused our attention on identifying and resolving the problems identified in the orders as expeditiously as possible."

The bank, which has 10 full-service branches in Springfield, Marshfield, Ava, Gainesville, Sparta, Theodosia, Crane, Galena, Kissee Mills and Rockaway Beach, will continue daily operations as normal.