Federal Reserve Imposes Capital Plan Deadline on Ontario Bancorporation

Ontario Bancorporation, Inc., a registered bank holding company based in Ontario, Wisconsin, has entered into a Written Agreement with the Federal Reserve Bank of Chicago. The agreement was signed on September 24, 2026, and becomes effective immediately.

The agreement is a result of an offsite review conducted by the Federal Reserve Bank of Chicago that identified certain deficiencies at the holding company. This led to a Consent Order between the FDIC and the Wisconsin Department of Financial Institutions with Bank of Ontario to address unsafe or unsound practices related to asset quality, capital, earnings, and liquidity.

Under the agreement, Ontario's board of directors must take steps to fully utilize its financial and managerial resources to serve as a source of strength to Bank of Ontario. The company must also submit a written capital plan within 60 days that includes an assessment of the bank's capital adequacy and an action plan to raise additional capital or improve the bank's financial condition.

The agreement also restricts Ontario from declaring or paying dividends, engaging in share repurchases, or making any other capital distribution without prior regulatory approval. Additionally, the company must submit a written statement of its planned sources and uses of cash for debt service, operating expenses, and other purposes covering the remainder of 2026.