The Federal Reserve on Tuesday disclosed written agreements with two banks.

Suburban Illinois Bancorp Inc. in Elmhurst, Ill., agreed to serve as a source of strength to its $607.5 million-asset Suburban Bank & Trust Co., which has been operating under a consent order with the Federal Deposit Insurance Corp. and its state banking regulator since April 5.

The company is barred from paying dividends and from paying interest or principal on subordinated debt and trust preferred securities without regulatory approval. The company must also submit a written plan to maintain "sufficient capital," along with cash flow projections for 2011.

First Bank of Baldwin in Wisconsin also agreed to provide the Fed with a written plan to maintain "sufficient capital." The $175 million-asset bank must also project a plan to improve its earnings and a 2011 budget. The written agreement also calls for written plans to strengthen board oversight and improve credit risk management practices, among other things.

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