A June 2014 enforcement action with Allied First Bancorp, Inc., of Oswego, Ill., that charged the bank holding company with, among other things, ensuring its subsidiary bank complied with an order finding unsafe and unsound practices, was terminated Sept. 2 by the Federal Reserve Board, the Fed said in a release this week.
Allied First Bancorp owns and controls Allied First Bank, SB, also of Oswego, and the 2014 agreement sets goals for ensuring the holding company serves as a source of strength for the bank. That included ensuring, among other things, that the bank complied with a January 2014 consent order with the Federal Deposit Insurance Corp. (FDIC) and the Illinois banking supervisor relating to the bank’s alleged “unsafe or unsound banking practices and violations of law, rule, or regulation” relating to weaknesses in capital adequacy, asset quality, management effectiveness, and earnings.
The June 14 order with Allied First Bancorp imposed limits on the payment of dividends, its taking of dividends or any other payment from the bank, and debt and stock redemptions. Additional provisions focused on cash flow projections, compliance with rules on affiliate transactions, and compliance with rules governing changes in directors or senior executive officers (and responsibilities) and restrictions on indemnification and severance payments.
Federal Reserve Board announces termination of enforcement action with Allied First Bancorp, Inc.