The Federal Reserve has reached a written agreement with Northwest Bancorporation of Illinois Inc. in Palatine.
The company agreed to serve as a source of strength for its $354.9 million-asset First Bank and Trust Co., which has been operating under a consent order with regulators since Jan. 5.
The company is prohibited from paying dividends or paying interest or principal for subordinated debt or preferred securities without Fed approval.
The agreement also bars the company from taking on new debt without regulatory approval.
Separately, the Fed announced that it had terminated an enforcement action against Heritage Commerce Corp. of San Jose, Calif., and its $1.25 billion-asset Heritage Bank.
The company had been operating under a written agreement since February 2010.
"The termination … is another indication of our improved financial condition," said Walter Kaczmarek, Heritage Commerce's president and chief executive. "We are now in [an] excellent position to move forward and build our franchise again," he added in a separate press release.
