In an effort to keep Johnson Financial Group healthy, the Johnson family will infuse $235 million in new capital to the group, which is the parent company of Johnson Bank.
During the global credit crisis of recent years, Johnson Bank has reported losses, prompting the Federal Reserve to direct Johnson Financial Group to come up with an acceptable recapitalization plan.
Johnson Bank CEO Thomas Bolger called the family’s investment the culmination of a process in which several options were explored. He said the new capital would place both companies above “well-capitalized” status.
Johnson Bank reported a $102 million loss in the fourth quarter 2010, primarily due to nonperforming loans.
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