Perry County Bancorp has entered into a written agreement with the Federal Reserve that instructs the Du Quoin, Ill., company to improve oversight over liquidity and interest rate risk.
The Fed entered into the agreement with Perry County and its $137 million-asset Du Quoin State Bank in April but it was just disclosed last week.
The agreement requires the board to take actions to improve the bank’s condition and maintain effective control over items such as capital, liquidity, interest rate risk management and investment policy, among other things.
The Fed cited undisclosed deficiencies that were discovered during a recent exam. More than half of the bank’s assets at the end of 2022 consisted of available-for-sale securities, and its accumulated other comprehensive income (AOCI) was $12.8 million.
The agreement bars the bank from issuing debt, redeeming stock or paying dividends without regulatory approval. The bank must also develop a capital plan, a program for board oversight and an investment policy.
Perry County and its bank are also required to submit quarterly progress reports.