Fed Issues Order Against Devon Bancorp in Illinois

by Brian Browdie

MAR 19, 2013 1:57pm ET

The Federal Reserve Board has taken action against a Midwest banking company.

The Fed said Tuesday that it has reached a written agreement with Devon Bancorp in Chicago. The company agreed to refrain from paying dividends, distributing capital or redeeming stock without regulatory approval. It will also provide written details about its sources and uses of cash.

The parent of the $240 million-asset Devon Bank also agreed to serve as a source of strength for the bank and to provide the Fed with quarterly progress reports.

Separately, the Fed terminated a written agreement with Bank VI in Salina, Kan., that obligated the bank to provide a written plan for maintaining sufficient capital and strengthening board oversight of its operations.

The July 2010 agreement also required the $65 million-asset bank to strengthen its credit risk management practices, to reduce concentrations of credit, to improve management of its funds and to hire an outsider to review its loan portfolio.

Bank VI also agreed to refrain from lending to any borrower that had loans flagged by examiners during a January 2010 examination. The bank was also required to improve its position in connection with past-due loans in excess of $250,000 and to eliminate losses that it had not already charged off.

The Fed took both actions on March 13 and announced them on Tuesday.

Link to Federal Reserve Action.

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You don't need an attorney with this kit.  You do need a Notary Public to witness signatures (most banks or currency exchanges have one).  It's also a good idea to have many copies of the legal documents and if anyone has an idea of what to do with the original?  I wouldn't put it in a safety deposit box at a bank.  In regard to Devon Bank taking over your assets, they just drill it open and take the contents.  Your family is then at the mercy of the trustees regardless of what the document states.  First thing banks do is liquidate assets or family jewelry, heirlooms, stocks, cars, land, property, etc., then invest that money in small state banks (friends of theirs) that yield little or no interest.  It's not uncommon for the bank to try to make money off you and the sentimental value you placed means nothing to them.

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Devon Bank Texas Ratio 2012

I don't know anything about the acquisition of this bank.  I found the Texas Ratio for the fourth quarter of 2012 here.

You can read what the FDIC published last year here.  Search Devon Bank.