LaSalle News Tribune | LaSalle, IL
Due to weather related issues, in some areas there may be delayed deliveries of your Monday issue of the NewsTribune.
If road conditions are severe enough, your delivery person may not be able to deliver your NewsTribune at all on Monday.
In this case, your Monday edition will be delivered with your Tuesday newspaper.
We ask you to be understanding for the safety of our carriers.

You can view Tuesday's newspaper online at

home : business : business daily   April 30, 2016

9/4/2012 3:16:00 PM
OCC: Citizens 'critically undercapitalized'

Lindsay Vaughn
Staff Writer

PRINCETON — Citizens First National Bank must raise capital or merge with another financial institution.
According to a recent 8-K filing released by the bank’s holding company, Princeton National Bancorp, the Office of the Comptroller of the Currency has notified the bank that it became “critically undercapitalized” as of Aug. 20. On that date, the bank had reported that its tangible equity to total assets ratio at the end of the quarter ending June 30 was 1.92 percent, below the level required by the prompt corrective action provisions of the Federal Deposit Insurance Act and the regulations of the OCC.
In keeping with the prompt corrective action framework, critically undercapitalized institutions are generally required to be placed into conservatorship or receivership within 90 days unless the institution can raise sufficient capital or merge with another financial institution, according to the bank’s 8-K filing.
According to the 8-K filing, PNBC and Citizens First National Bank are “diligently working to evaluate and pursue strategic alternatives. There can be no assurance that the Company or the Bank will be successful in obtaining outside additional capital or merging with or being acquired by another company within any regulatory imposed time frame.”
The bank remains obligated to submit a capital restoration plan acceptable to the OCC and guaranteed by PNBC, according to the 8-K filing. Among other restrictions, the bank also is prohibited from entering into any material transaction other than in the usual course of business, extending any credit for any highly leveraged transactions, amending the bank’s charter or bylaws, making any material change in accounting methods and paying excessive compensation or bonuses without prior approval from the FDIC, according to the 8-K filing.
Deposits at the bank continue to be insured by the FDIC up to the legal maximum insurance limit of $250,000, according to the 8-K filing. The bank’s staff can help depositors with any questions.
PNBC president and CEO Thomas Ogaard was unavailable for comment by deadline this morning.

Related Stories:
• Failed Citizens bank is now Heartland Bank

Login to your account:
Remember me
Login reminder
  If you'd like to comment on this article, please log in or click here to subscribe.


Subscription Login

Track and field: L-P sweeps Mendota meet
Updated: 4/30/2016 12:16:00 AM
Baseball: Hall edges Fulton
Updated: 4/30/2016 12:13:00 AM
Roundup: Mendota baseball tops Dixon
For the Record (4-30-16): Newstip, Police Reports
Ottawa man arrested for allegedly setting co-worker on fire
Horman gets 40 years in Ottawa murder-cremation case

Illinois Valley Events
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Photo GalleryVideo LibraryMagazinesDealsAbout UsAP Terms of UseAdvertise With UsExtra Content

Copyright 2016 NewsTribune, LaSalle, Illinois. All rights reserved.

Software © 1998-2016 1up! Software, All Rights Reserved