The Federal Deposit Insurance Corp. has cited Family Bank and Trust Co. in the Chicago suburb of Palos Hills, Ill., for a weakened capital position and unsound management.
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In a May 9 cease-and-desist order released to the public last week, the FDIC said that the $81 million-asset unit of Community Holdings Corp. had management policies that were "detrimental to the safety and soundness of the bank," and that it had operated "with an inadequate level of capital for the kind and quality of assets held."
The FDIC ordered Family Bank and Trust to retain qualified management within 60 days, maintain a Tier 1 capital ratio of 7.5% of total assets, and reduce its risk exposure to "substandard" assets, among other requirements.
