August 27, 2010 – The FDIC today released a list of orders of administrative enforcement actions taken against banks, including 30 cease and desist consent orders.
A cease and desist order is issued when the FDIC has “determined that it had reason to believe that the Bank engaged in unsafe or unsound banking practices and violations of law and/or regulations.”
It is highly likely that banks issued cease and desist orders or prompt corrective actions are on the Problem Bank List. The Problem Bank List contains the names of institutions that have weak capital positions caused by large loan losses or operational deficiencies that usually lead to failure. The FDIC does not publicize the list for fear of causing depositor withdrawals and bad publicity which would only serve to hasten the bank’s closing.
As of the latest report released by the FDIC there were 775 problem banks at March 31, 2010 up from 702 at the end of 2009. Total assets held by the troubled institutions is $431.2 billion, up from $402.8 billion at the end of 2009.
Given the serious financial issues cited by the FDIC for the banks listed below, expect many of these institutions to wind up on the Failed Bank List. Banking depositors with balances in excess of the FDIC deposit insurance limit should consider this list as “fair warning” from the FDIC and take appropriate action to avoid potential losses.
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. §1818(b)
(Cease-and-Desist)
CB&S Bank, Inc., Russellville, AL; FDIC-10-176b; Issued 7/8/10 – PDF
Summit Bank, Prescott, AZ; FDIC-10-384b; Issued 7/28/10 – PDF
Metro United Bank, San Diego, CA; FDIC-10-379b; Issued 7/22/10 – PDF
Oceanic Bank, San Francisco, CA; FDIC-10-362b; Issued 7/15/10 – PDF
The Wilton Bank, Wilton, CT; FDIC-10-375b; Issued 7/22/10 – PDF
Bank of Jackson County, Graceville, FL; FDIC-10-364b; Issued 7/27/10 – PDF
Great Eastern Bank of Florida, Miami, FL; FDIC-10-365b; Issued 7/27/10 – PDF
TIB Bank, Naples, FL; FDIC-10-358b; Issued 7/2/10 – PDF
Pinnacle Bank, Orange City, FL; FDIC-10-184b; Issued 7/7/10 – PDF
First Chatham Bank, Savannah, GA; FDIC-10-177b; Issued 7/13/10 – PDF
AztecAmerica Bank, Berwyn, IL; FDIC-10-441b; Issued 7/30/10 – PDF
Millennium Bank, Des Plaines, IL; FDIC-10-200b; Issued 7/20/10 – PDF
First Choice Bank, Geneva, IL; FDIC-10-311b; Issued 7/29/10 – PDF
Security Bank, S.B., Springfield, IL; FDIC-10-317b; Issued 7/20/10 – PDF
Midwest Community Bank, Plainville, KS; FDIC-08-373b; Issued 7/12/10 – PDF
First Bank and Trust, New Orleans, LA; FDIC-10-329b; Issued 7/9/10 – PDF
HarVest Bank of Maryland, Rockville, MD; FDIC-10-349b; Consent Order; Issued 7/2/10 – PDF
Monroe Bank & Trust, Monroe, MI; FDIC-10-163b; Issued 7/12/10 – PDF
Sherburne State Bank, Becker, MN; FDIC-10-296b; Issued 7/12/10 – PDF
Riverland Bank, Jordan, MN; FDIC-10-208b; Issued 7/1/10 – PDF
Progrowth Bank, Nicollet, MN; Issued 7/1/10 – PDF
1st Commerce Bank, North Las Vegas, NV; FDIC-09-703b; Issued 7/13/10 – PDF
Hanover Community Bank, Garden City Park, NY; FDIC-10-292b; Issued 7/27/10 – PDF
Parkway Bank, Lenoir, NC; FDIC-10-402b; Issued 7/15/10 – PDF
Security Savings Bank, SSB, Southport, NC; FDIC-10-330b; Issued 7/28/10 – PDF
Benchmark Bank, Gahanna, OH; FDIC-10-355b; Issued 7/30/10 – PDF
Sevier County Bank, Sevierville, TN; FDIC-10-150b; Issued 7/27/10 – PDF
Main Street Bank, Kingwood, TX; FDIC-10-321b; Issued 7/28/10 – PDF
Cascade Bank, Everett, WA; FDIC-10-322b; Issued 7/15/10 – PDF
Citizens Bank of Mukwonago, Mukwonago, WI; FDIC-10-357b; Issued 7/30/10 – PDF
what about first mariner bank of baltimore, md
First Mariner had a cease and desist on April 22, 2009
http://www.fdic.gov/bank/individual/enforcement/2009-04-18.pdf
I read nothing in any of the Consent Orders that attributes the decline in the Bank’s financial strength to the worst economic conditions since the last Great Depression. To ignore this 2nd Great Depression and its impact on all financial institutions is both egregious and disingenuous. A strong case could be made that failure to regulate the no doc no income lending and the mortgage backed security programs were the primary ingredient that led to the economic problems this country is facing today. I believe consideration should be given by the FDIC to replace “Unsafe and Unsound Banking Practices” in the Consent Order with “Unsafe and Unsound Regulatory Practices”. The failure of the regulatory agencies to monitor the NDNI lending and the compensation practices of the “too big to fail” institutions are the two primary ingredients that caused this 2nd Great Depression. It is this 2nd Great Depression that is the primarily responsible for the rapid decline in real estate values and the corresponding decline in the Bank’s financial condition. Smaller banks that were denied TARP funding are not being forced to compete with the larger TARP funding institutions that can afford to dump real estate they hold as OREO below fair market value. This forces market value down for all properties. Falure of FDIC and other regulatory practices is and continues to be the driving negative impact on finacial recover today
What about Eastern savings Bank, They are the worst, don’t do business with them!!!!!
You probably won’t have to worry about doing business with them for very long. They are rated the most troubled bank in the state of Maryland by depositaccounts.com.
Eastern Savings Bank has a Texas Ratio of 510% and anything over 100% is considered very risky. Eastern has total assets of around $680 million of which almost $300 million is classified as troubled assets.
Why this bank is still allowed to operate is a good question.