By Becky Yerak |
First Chicago Bancorp, the parent of First Chicago Bank & Trust, has been ordered by U.S. and state banking regulators to strengthen its management, improve its lending procedures, and reduce its reliance on commercial real estate.

The Chicago-based company must also submit a plan within 60 days to “maintain sufficient capital.” No specific capital levels were specified in the 15-page order.

It must also stop accepting new brokered deposits and must not pay any
dividends without regulatory approval.

The company couldn’t be reached for immediate comment.

In October, First Chicago Bank & Trust, with $1.19 billion in
assets, raised about $45 million in additional capital, mostly from
existing investors.

Its holding company is First Chicago Bancorp.

Castle Creek Capital III LLC, an investment fund, owns 40.6 percent of
the company.

As of Dec. 31, 11.1 percent of the bank’s loans were seriously past due, up from 6.2 percent a year ago.

Read a copy of the entire order here.