The Federal Reserve has reached a written agreement with Princeton National Bancorp Inc. in Princeton, Ill.
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Princeton National agreed to serve as a source of strength to its Citizens First National Bank, which has been operating under a consent order with the Office of the Comptroller of the Currency since Sept. 20.
Under the agreement, announced Tuesday, the $1.1 billion-asset company is barred from paying dividends or from paying principal and interest on subordinated debt and trust preferred securities without Fed approval.
Princeton also agreed to provide the Fed with a written plan to "maintain sufficient capital," along with cash flow projections for 2012.
