A photo of $100 bills. (Photo:
Federal and state banking regulators have entered into a formal agreement with SouthPoint Bancshares, the Birmingham-based parent company of SouthPoint Bank, requiring it to show how it could financially support the bank if needed.
The agreement, signed Aug. 14 by SouthPoint Bancshares, the Federal Reserve Bank of Atlanta and the Alabama State Banking Department, follows an offsite review that identified deficiencies at the holding company.
It also comes after the FDIC and Alabama State Banking Department entered a separate consent order with SouthPoint Bank in November 2025 aimed at improving the bank’s operations and financial condition.
Under the new agreement, SouthPoint Bancshares has 60 days to submit a plan to regulators explaining how it will maintain enough capital and provide financial assistance to the bank. That plan must address possible ways to raise additional money or contribute assets to the bank, if necessary.
The parent company must also provide cash-flow projections and submit quarterly updates detailing its progress.
Effective immediately, SouthPoint Bancshares cannot pay dividends, repurchase shares, make other capital distributions or take on, increase, prepay or guarantee debt without prior written approval from regulators.
In simple terms, regulators are directing the company that owns SouthPoint Bank to preserve its financial resources, plan for potential problems and show it can help the bank if the bank’s condition worsens.
The agreement does not say SouthPoint Bank is closing, and it does not announce that customers cannot access their accounts. But it is a serious regulatory action because it places new limits on the parent company’s finances and requires closer oversight.
The filing says the agreement is legally enforceable and does not prevent federal or state regulators from taking additional action in the future.
