The Federal Reserve and the Alabama State Banking Department ordered SouthPoint Bancshares to take steps “to serve as a source of financial and managerial strength” for its subsidiary SouthPoint Bank.

Birmingham, Alabama-based SouthPoint Bancshares must submit a capital plan and cash-flow projections to the Federal Reserve and state officials in 60 days, documents show.

SouthPoint is the holding company of SouthPoint Bank, a $1.7 billion-asset lender which has operated under a consent order by the Federal Deposit Insurance Corp. since November 2025 over issues including credit risk management and asset quality.

The Fed, alongside the Alabama State Banking Department, ordered the bank’s holding company to “take appropriate steps to fully utilize SouthPoint’s financial and managerial resources … to serve as a source of financial and managerial strength to the Bank.”

This could include raising additional capital for the bank or taking other steps to improve the bank’s financial condition in the event of financial distress, regulators said.

The capital plan, which must be submitted within 60 days from Aug. 14, must include an assessment of current and anticipated uses and sources of capital; an analysis of capital adequacy; an action plan to raise more capital and a better capital contingency plan that addresses both SouthPoint’s and its subsidiary bank’s short-term and long-term capital needs.

SouthPoint must also submit a statement detailing its planned sources and uses of cash for debt service, operating expenses and other purposes for 2026, regulators said.

Effective immediately, SouthPoint can’t declare or pay dividends, engage in share repurchases, or make any other capital distribution without regulatory approval; and must seek regulatory approval before incurring, increasing or guaranteeing any debt.

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