A northern Illinois bank faces pressure to improve its financial footing. Citizens First National Bank has received notification from regulators that it has become "critically under-capitalized." Jackie Karlosky is the bank's senior vice president. She says the warning from regulators means they have a short window to boost reserves.
"If the bank is not able to meet the request within 90 days, then there's various options that would happen. But ultimately, what could happen is the bank would be placed in receivership" Karlosky said.
If that were to happen, Citizens First would turn over control to another bank. Karlosky says they're exploring ways to avoid that scenario. That includes talking with investors about raising the necessary funds. She says the situation was caused in part by troubled commercial loans.
The bank has several branches in the LaSalle area and the Fox River Valley.
*Citizens First is an underwriter of WNIJ.