Perry County Bancorp in Illinois freed from Fed written agreement

The Federal Reserve has terminated a written agreement against Perry County Bancorp in Du Quoin, Ill.

The written agreement, issued in April 2023, instructed the parent of Du Quoin Bank to improve oversight over liquidity and interest rate risk. It required the board 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.

More than half of the bank’s assets at the end of 2022 were available-for-sale securities, and its accumulated other comprehensive income was $12.8 million. Du Quoin was one of 18 U.S. banks to post a negative tangible common equity ratio due to unrealized losses in its available-for-sale securities portfolio, according to data compiled by S&P Global.