First Choice boosts capital

Geneva-based First Choice Bank said Tuesday that it has signed a consent order with the state and FDIC to boost its capitalization to about $11 million.

The bank, which also has a branch in Wheaton, said about $7 million is from current shareholders. Two other groups, consisting of real estate venture partners, provided an additional $4 million, said bank President Jim Valete.

He declined to identify the private investors, but said consumers with accounts at the bank will see no changes.

"We've never been in any danger" of closing, said Valete.

But during a regular examination by bank authorities, First Choice was told to boost its capital. That consent order was signed July 29 and filed on Monday, he said.

The bank was hurt by nonperforming loans, mostly from businesses that included homebuilders, Valete said.

First Choice, which opened in 2001, aims to continue its regular business and commercial loans and expand into residential mortgages. The bank, which employs about 45 workers, plans to add three more employees soon, he said.