FDIC Issues Consent Orders & Prompt Corrective Actions To 26 Banks

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.

(Consent Orders)

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.

(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


  1. Martha berumen says:

    Hi…i was told by the administrator that that payment from national city bank would be paid in early 2015. I have contacted the administrator and they cannot estimate when they will pay…their offenses keep on going…

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