A Wisconsin bank’s holding company is now under an enforcement order issued Friday by the Federal Reserve for “unsafe and unsound” banking practices – about two months after another federal banking agency issued a similar order for the bank owned by the firm.
The Fed issued the enforcement order against Ontario Bancorporation Inc., the agency said. The agency said its most recent, offsite review of the firm found certain deficiencies, including unsafe and unsound practices related to asset quality, capital, earnings and liquidity.
In early August, the Federal Deposit Insurance Corp. (FDIC) issued a similar order against the bank owned by the firm, Bank of Ontario of Ontario, also of Ontario, Wis. The agency said it and the state regulator, the Wisconsin Department of Financial Institutions (WDFI) “had reason to believe the Bank had engaged in unsafe or unsound practices or violations of law or regulation.”
Both the firm and the bank have consented to the order and agreed to address the “unsafe and unsound” practices related to asset quality, capital, earning and liquidity. No other details were provided by the regulators.
Federal Reserve Board issues enforcement action with Ontario Bancorporation, Inc.
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