Peoples Bank, Fed reach agreement
Lincoln County Bancorp and its Peoples Bank and Trust Co. subsidiary of Troy, Mo., reached an agreement last week with the Federal Reserve Bank of St. Louis “in recognition of their common goal to maintain the financial soundness” of the two financial entities, the Federal Reserve Board said Monday.
Under the agreement, dated June 14, Peoples Bank must file plans to strengthen credit risk management practices, strengthen commercial real estate concentrations, real estate appraisal practices and asset improvement. The plans primarily are due within 60 days of the agreement.
According to the agreement, the bank also must get prior approval to extend, renew or restructure any loans that are criticized in the Fed’s examination of the bank that began Sept. 8, 2009.
Peoples Bank also must charge-off or collect all assets classified as a “loss” in the Fed’s examination report.
The holding company and bank must submit a joint written plan to each maintain sufficient capital.
Peoples Bank is to submit to the Fed a written business plan for the rest of 2010 to improve the bank’s earnings and overall condition. The holding company has to submit a written statement of its planned sources and uses of cash for 2010.
Neither Lincoln county Bancorp or Peoples Bank are to declare or pay dividends without prior approval from the Fed.
Donald Thompson is chairman of both Lincoln County Bancorp and Peoples Bank and Trust Co.
In addition to Peoples Bank and Trust Co., Lincoln County Bancorp.’s subsidiaries are: People’s Bank of Altenburg, Mo., in Perry County; Bank of Louisiana, Mo., in Pike County; Exchange Bank of Missouri in Fayette, Mo., in Howard County; and Exchange Bank of Northeast Missouri in Kohoka, Mo., in Clark County. The company also owns an unregulated subsidiary, Vacations, a travel agency.
As of March 31, Lincoln County Bancorp had combined total deposits of $584.7 million, and combined total assets of $707.9 million as of Peoples Bank and Trust Co. had total assets of $415.9 million as of March 31.