Fed terminates 2010 enforcement with IL bank holding company

A July 2010 enforcement order requiring A.E. Bancorp Inc. to ensure compliance by its subsidiary American Enterprise Bank of Buffalo Grove, Ill., with provisions of a consent order between the bank and the federal bank deposit insurer was terminated Jan. 9, the Federal Reserve said in a release Thursday.

American Enterprise Bank, a state-chartered nonmember bank, in February of 2010 entered into a consent order with the Federal Deposit Insurance Corp. (FDIC) and the Illinois banking regulator that referenced “charges of unsafe or unsound banking practices and violations of law or regulation relating to Earnings, Asset Quality, Management, and Capital.” The bank waived its right to a hearing and signed a consent order that required, among numerous things, that it have and maintain a capital ratio of at least 9% and a total risk-based capital ratio of at least 13%; charge off from its books and records any loan classified “Loss” in the Report of Examination dated Sept. 8, 2009; conduct an investigation of its gas station/convenience store loan portfolio and present corrective action; and establish and adhere to a written contingency funding (liquidity) plan.

A.E. Bancorp, under the just-terminated order, agreed to “serve as a source of strength to the Bank, including, but not limited to, taking steps to ensure that the Bank complies with the Consent Order entered into with the Federal Deposit Insurance Corporation and the Illinois Department of Financial and Professional Regulation on February 24, 2010, and any other supervisory action taken by the Bank’s federal or state regulator.”

Federal Reserve Board announces termination of enforcement action with A.E. Bancorp, Inc.

July 2010 enforcement action (A.E. Bancorp Inc. and Federal Reserve Bank of Chicago)

February 2010 consent order (American Enterprise Bank, FDIC, and Illinois Department of Financial and Professional Regulation)