Fed Issues Written Agreement for Iuka Bancshares and Bank

The Federal Reserve Board announced a formal enforcement action against Iuka Bancshares, Inc. and The Iuka State Bank, requiring both institutions to comply with a newly issued Written Agreement.

The regulatory action, dated July 15, 2026, involves the bank holding company and its subsidiary bank, both located in Salem, Illinois, according to public regulatory disclosures.

What is a Federal Reserve Written Agreement?

A Written Agreement is a formal, administrative enforcement action issued by the Federal Reserve when supervisory authorities identify safety and soundness concerns or regulatory non-compliance at a supervised institution. Unlike public cease-and-desist orders or civil money penalties, a Written Agreement is a consensual corrective arrangement entered into by the institution's board of directors.

The agreement typically requires the bank and its holding company to submit detailed plans for improving board oversight, strengthening capital and liquidity positions, and addressing specific operational or risk-management deficiencies identified during examinations.

Scope of the Action

The enforcement action applies jointly to Iuka Bancshares, Inc. as the parent holding company and The Iuka State Bank as the underlying depository institution. Regulatory filings from the Federal Reserve did not immediately disclose the specific financial metrics or examination findings that triggered the July 15 agreement.