The Federal Reserve has ordered Burlington-based First Banking Center to raise capital or sell itself, saying that the bank is “significantly undercapitalized”.
According to the directive from the Federal Reserve, the bank needs to either raise enough capital or enter into an agreement to be acquired by early October. The bank’s ability to make dividend payments has been temporarily reduced, as has its ability to accept new deposits that exceed prevailing rates on comparable deposits. By early September, the bank must create a plan to confront interest rates paid on non-time deposit accounts.
First Banking Center has about $869 million in assets. It operates 17 branches in communities Burlington, Lake Geneva, Kenosha, Union Grove, and other communities in far southeastern and south central Wisconsin.
