October 1, 2010 – The FDIC recently released a list of orders of administrative enforcement actions taken against banks, including 22 “Consent Orders” (formerly called “cease and desist consent orders”) and 4 Prompt Corrective Actions.
A cease and desist order (consent 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 829 problem banks at June 30, 2010 up from 702 at the end of 2009. Total assets held by the troubled institutions is $403.2 billion at June 30, 2010, 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)
SouthPoint Bank, Birmingham, AL; FDIC-10-414b; Issued 8/10/10 – PDF
Farmers Exchange Bank, Louisville, AL; FDIC-10-382b; Issued 8/10/10 – PDF
United Pacific Bank, City of Industry, CA; FDIC-10-392b; Issued 8/5/10 – PDF
Western Commercial Bank, Woodland Hills, CA; FDIC-10-575b; Issued 8/20/10 – PDF
First Guaranty Bank and Trust Company of Jacksonville, Jacksonville, FL; FDIC-09-686b; Issued 8/11/10 – PDF
Syringa Bank, Boise, ID; FDIC-10-314b; Issued 8/19/10 – PDF
Builders Bank, Chicago, IL; FDIC-10-535b; Issued 8/5/10 – PDF
Bank of the Prairie, Olathe, KS; FDIC-10-459b; Issued 8/26/10 – PDF
The Community Bank, A Massachusetts Cooperative Bank, Brockton, MA; FDIC-10-588b; Issued 8/12/10 – PDF
First Carolina State Bank, Rocky Mount, NC; FDIC-10-319b; Issued 8/24/10 – PDF
Cornerstone Bank, Enderlin, ND; FDIC-10-470b; Issued 8/12/10 – PDF
Northwest Bank, Lake Oswego, OR; FDIC-10-421b; Issued 8/30/10 – PDF
Colonial American Bank, Horsham, PA; FDIC-10-473b; Issued 8/11/10 – PDF
First South Bank, Spartanburg, SC; FDIC-10-300b; Issued 8/27/10 – PDF
Bank of Lincoln County, Fayetteville, TN; FDIC-10-023b; Issued 8/10/10 – PDF
Proficio Bank, Salt Lake City, UT; FDIC-10-449b; Issued 8/5/10 – PDF
Shorebank, Pacific, Ilwaco, WA; FDIC-09-513b; Issued 8/10/10 – PDF
Cambridge State Bank, Cambridge, WI; FDIC-10-337b; Issued 8/16/10 – PDF
The Park Bank, Madison, WI; FDIC-10-318b; Issued 8/13/10 – PDF
Securant Bank & Trust, Menomonee Falls, WI; FDIC-10-380b; Issued 8/24/10 – PDF
First State Bank, New London, WI; FDIC-10-215b; Issued 8/31/10 – PDF
Community Business Bank, Sauk City, WI; FDIC-10-455b; Issued 8/9/10 – PDF
A prompt corrective action directive by the FDIC is a “formal action that requires an institution to take one or more specified actions to return to required minimum capital standards”. A prompt corrective action is more serious than a consent order and issued to banks that exhibit progressively deteriorating capital ratios.
FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. § 1831o
(Prompt Corrective Actions)
Western Commercial Bank, Woodland Hills, CA; FDIC-10-558PCAS; Issued 8/5/10 – PDF
Idaho First Bank, McCall, ID; FDIC-10-557PCAS; Issued 8/20/10 – PDF
Peoples State Bank, Hamtramck, MI; FDIC-10-598PCAS; Issued 8/18/10 – PDF
American Patriot Bank, Greeneville, TN; FDIC-10-472PCAS; Issued 8/17/10 – PDF