Johnson Bank of Racine signs agreement with Feds to improve bank conditions
Wisconsin Business-- Wisconsin’s third-largest home-grown bank has been ordered to improve its financial condition. Johnson Bank, based in Racine, signed an agreement with the Federal Reserve and state banking officials this week. The bank will draft a plan to improve its loan portfolio and maintain enough capital.
RACINE - Wisconsin’s third-largest home-grown bank has been ordered to improve its financial condition. Johnson Bank, based in Racine, signed an agreement with the Federal Reserve and state banking officials this week. The bank will draft a plan to improve its loan portfolio and maintain enough capital.
The agreement also calls for more oversight by Johnson Bank’s board-of-directors, and a written strategy to improve earnings. Also, the bank cannot pay dividends to shareholders without approval by the Federal Reserve. Among other things, Johnson Bank has closed some branches in the last year to deal with losses stemming from bad commercial real estate loans.
The bank has assets of around four-and-a-half billion dollars. Johnson Bank is not alone in having to make improvements. Over 50 Wisconsin banks have received special orders since 2008 to bolster their bottom lines.
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