July 18, 2024

OTTAWA — The holding company that owns Peoples Bank has signed an agreement with the Federal Reserve Bank of Kansas City. Under the agreement announced Monday afternoon, the People’s board of directors will strengthen its oversight of management and operations of the bank, tighten lending practices, maintain a minimum amount of capital and agrees not to pay any dividends to shareholders without the written permission of the Federal Reserve. Peoples Bank CEO and president Wint Winter Jr. said shareholders have added nearly $3 million in additional capital. He said Peoples has made substantial progress in improvement of the bank’s safety and soundness and he said he’s pleased with the bank’s efforts. The agreement reflects unique local financial challenges experienced over the last couple of years by many of the banks’ consumer and small business customers because of the economy, he said. Banking experts say that because of the economy and the Wall Street financial meltdown, federal regulators are taking a closer and tougher look at the nation’s banking system.

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