- Current report filing (8-K)
May 24 2012 - 11:28AM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
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Date of Report
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May 22, 2012
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(Date of earliest event reported)
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First
Ottawa Bancshares, Inc.
(Exact
name of Registrant as specified in its charter)
Delaware
(State
or other jurisdiction of incorporation)
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000-30495
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36-4331185
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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701 LaSalle Street, Ottawa, Illinois
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61350
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(Address of principal executive offices)
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(Zip Code)
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(815)
434-0044
(Registrant's
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (
see
General Instruction A.2 below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
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Item
1.01. Entry into a Material Definitive Agreement
Effective
May 22, 2012, The First National Bank of Ottawa (the “Bank”), the wholly-owned banking subsidiary of First Ottawa
Bancshares, Inc., entered into a formal written agreement (the “Written Agreement”) with the Office of the Comptroller
of the Currency (the “OCC”).
The
Written Agreement requires the Bank to take affirmative actions to improve its practices relating to insider lending, loan risk
ratings and allowance for loan and lease losses (“ALLL”) methodology. A summary of the specific commitments contained
in the Written Agreement are as follows:
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•
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Extensions
of
Credit
to
Insiders
.
The
Bank
is
prohibited
from
extending
any
credit,
including
the
payment
of
overdrafts,
directly
or
indirectly
to
an
insider,
unless:
(i)
the
extension
of
credit
is
approved
in
advance
by
the
disinterested
members
of
the
Bank’s
board
of
directors;
and
(ii) the
Bank’s
board
of
directors
adopts
a
written
statement
explaining
why
such
extension
of
credit
is
advantageous
for
the
Bank
and
that
the
action
complies
with
all
applicable
laws.
An
“insider”
is
any
executive
officer,
director,
or
principal
shareholder,
and
includes
any
related
interest
of
such
a
person.
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•
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Loan
Risk
Rating
System
.
The
Bank’s
board
of
directors
must
ensure
that
the
Bank’s
internal
risk
ratings
of
commercial
or
agricultural
credit
relationships
(each,
a
“covered
relationship”),
as
assigned
by
responsible
loan
officers
and
by
any
independent
loan
reviewer,
are
timely,
accurate
and
consistent
with
applicable
regulatory
credit
classification
criteria.
Moreover,
the
Bank’s
board
of
directors
must
ensure
that
any
covered
relationship
with
a
high
probability
of
payment
default
or
other
well-defined
weakness
is
rated
no
better
than
Substandard,
unless
the
debt
is
secured
by
marketable
securities
or
cash.
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•
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Allowance
for
Loan
and
Lease
Losses
.
The
Bank
is
required
to
review
and
revise
its
ALLL
methodology
in
accordance
with
applicable
regulatory
guidelines
and
generally
accepted
accounting
principles
and
to
develop
and
adopt
a
written
program
for
the
maintenance
of
an
adequate
ALLL.
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The
Bank’s management and board of directors are committed to taking the necessary actions to fully address the provisions of
the Written Agreement within the timeframes identified therein.
A
copy of the Written Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by reference. The description of the
Written Agreement set forth above does not purport to be complete and is qualified by reference to the full text of the Written
Agreement.
Item
9.01. Financial Statements and Exhibits
(d)
Exhibits
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10.1
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Agreement
by and between The First National Bank of Ottawa and the Office of the Comptroller of the Currency, effective May 22, 2012
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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Dated:
May 24, 2012
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FIRST
OTTAWA BANCSHARES, INC.
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By:
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/s/Joachim
J. Brown
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Name:
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Joachim
J. Brown
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Title:
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President
and Chief Executive Officer
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