The Federal Reserve has announced written agreements with three banking companies.
Parkway Bancorp Inc. in Harwood Heights, Ill., agreed to serve as a source of strength to its $2.36 billion-asset Parkway Bank and Trust Co., which has been operating under a consent order from the FDIC and its state regulator since April 4. The company was ordered to provide the Fed with a written plan to "maintain sufficient capital" and a cash flow projection for 2012, among other things.
Fox River Valley Bancorp Inc. in Appleton, Wis., agreed to serve as a source of strength to its $308.3 million-asset Business Bank, which has been operating under a consent order with the Federal Deposit Insurance Corp. and its state regulator since March 4.
Under the agreement, the company is barred from paying dividends or making payments on principal or interest on subordinated debt or trust preferred stock. The company must also provide the Fed with cash flow projections for 2012.
Finally, Liberty Bancorp in South San Francisco, Calif., agreed to serve as a source of strength to the $229.4 million-asset Liberty Bank. The company agreed to provide the Fed with written plans to strengthen credit risk management practices and board oversight of the management and operations of the bank, among other things.