The Federal Reserve has ordered Bridgeview Bancorp Inc. in Illinois to serve as a source of strength to its bank.
The Fed reached a written agreement on Feb. 18 with the $1.4 billion-asset company that gives it 60 days to maintain adequate capital on a consolidated basis. The accord also bars Bridgeview from paying dividends or receiving them from its bank, Bridgeview Bank Group. The Fed made the source-of-strength announcement Tuesday.
Bridgeview Bank entered into a consent order with the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corp. on Feb. 10. That order calls for it to conduct a management study and requires it to have a 9% leverage ratio and a 13% total risk-based capital ratio within 180 days. At Dec. 31, the leverage ratio was 7.3% and the total risk-based capital ratio was 13.04%.