Wisconsin Business Briefs: Johnson Bank of Racine back to making money againWisconsin Business
-- Wisconsin’s second-largest home-owned bank is profitable again. And federal regulators say the Johnson Bank of Racine no longer needs special government scrutiny.
RACINE - Wisconsin’s second-largest home-owned bank is profitable again. And federal regulators say the Johnson Bank of Racine no longer needs special government scrutiny.
The bank saw its capital funding went down due to bad loans during the Great Recession. Since then, Johnson Bank obtained new leaders. And the Racine family that owns S.C. Johnson invested $235-million to restore the bank’s federal status of being well-capitalized. The government said Johnson Bank had a net income of $15-million from January through September. Johnson Financial Group president Tom Bolger said the bank has made good progress in returning to profitability – and the ending of the scrutiny means that regulators are again confident that Johnson Bank has a strong financial position. The bank was under a federal agreement since May of last year to take a number of steps to strengthen the business.
A former assistant manager for Park Bank will have to find a new career. Lance Bauer has been permanently barred from any future work in the banking industry. He would have to get approval from regulators before he could return. Bauer was convicted last year of embezzling nearly $230,000 from a customer’s account. A federal prosecutor said most of the money was used to support a drug habit, though he also bought a luxury car. Bauer was sentenced to two and a half years in prison, probation and was ordered to pay restitution.