Thanks to a recent posting by City Barbs [http://www.citybarbs.com/?p=6007] this business news regarding Castle Bank has just come to light. Much of this has not been covered by the local news media.
In June 2009 the Comptroller of the Currency [OCC] determined that the “Bank has engaged in unsafe and unsound banking practices relating to its credit underwriting and administration, commercial real estate risk management, problem loan management, credit risk ratings, allowance for loans and lease losses, and Bank Secrecy Act program.” OCC’s formal “written agreement” with Castle Bank is available at : .http://www.occ.gov/static/enforcement-actions/ea2009-107.pdf The various loan review and administration procedures that were required by that agreement are listed in that document.
The written agreement was signed by the Directors of the then Castle Bank, NA, DeKalb, Illinois and included the following notables: John W. Castle (DeKalb), Jack D. Franks (Woodstock, State Representative of the 63rd District) and Herbert H. Franks (Marengo, attorney, father of Jack D.). Mr. Castle is a long time Director of First National Bank of Omaha and First National of Nebraska, however currently (2010) he does not serve on either of those boards. The Franks have been directors at Castle Bank since their family owned bank, First National Bank of Marengo merged with Castle Bank. Castle Bank was founded in 1856 in Sandwich, Illinois and was owned by the Castle family for generations.
This enforcement action (EA#2009-107) was terminated on 11-1-2010; see: http://www.occ.gov/news-issuances/news-releases/2010/nr-occ-2010-144.html . This termination occurred after the merger of Castle Bank into First National Bank of Omaha.
Castle Bank of Illinois (current division name for the bank) has its main office in DeKalb with branches in Belvidere, DeKalb, Harvard, Huntley, Lake in the Hills, Marengo, Oswego, Plano, Sandwich, Sugar Grove, Sycamore, and Yorkville.
Castle Bank is a division of First National Bank of Omaha, a subsidiary of First National of Nebraska. First National Bank of Omaha has 87 locations in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas (see map), 251 ATMs, 3,500 employees and $13.7 billion in assets.
The largest privately owned banking company in the United States, Lauritzen Corporation, has controlled First National Bank of Omaha and First National of Nebraska for the past decade. National City Corporation and Lauritzen Corporation were the two largest banking organizations denied TARP [Troubled Asset Recovery Program] funds in 2008 from the U.S. Treasury Department.