Regulators demand changes at Legacy Bank
Milwaukee-based Legacy Bank and Legacy Bancorp Inc., its corporate parent, have been ordered to raise capital, strengthen board oversight of the bank’s operations, strengthen credit risk management practices and write down losses that have not been fully charged off by the Federal Reserve System and the Wisconsin Department of Financial Resources.
Legacy Bank and its holding company have agreed to submit plans to improve within the next 60 days, according to materials filed with the Federal Reserve.
The bank, which has about $236 million in assets under management, must improve its condition and control over the actions senior management – in particular its lending, credit risk management, loan review, capital, earnings and liquidity.
The bank also will need to address its risk management practices, in particular its risk tolerance guidelines, exposure limits, identification and quantification of risks within its loan portfolio and more.
Legacy Bancorp accepted about $5.5 million in Troubled Asset Relief Program (TARP) funding in early 2009.
