Under the agreement, Riverside Bank is required to take specific steps to implement certain policies and procedures. It requires the bank to retain an independent consultant, acceptable to the Federal Reserve and the Division of Financial Institutions, to conduct a review of staffing needs and the qualifications and performance of all senior managers. A compliance committee, composed mostly of people who are not executive officers or principal shareholders, will monitor the bank’s compliance with the agreement.

The bank has not violated any regulations or laws, and there are no penalties involved.

Last week, Brazilian businessman Marcelo Lima of Sao Paulo, Brazil, applied to buy Riverside Bank of the Gulf Coast with the state Office of Financial Regulation. If the deal goes through, Elmer Tabor bank chairman said, "There's not going to be any name change, management change, all that will be the same and Riverside will move forward." Both OFR and the Federal Reserve would have to approve any purchase, he said.