FDIC Issues 87 Enforcement Actions Against Banks

The FDIC issued 87 enforcement actions against problem banks and individuals in March, up from 60 in February.  The administrative enforcement actions processed included 22 consent orders, 15 civil money penalties and 6 prompt corrective actions.

Regulatory enforcement actions are issued to address serious deficiencies or when regulators have doubts about an institution’s ability to implement required corrective actions.  Institutions considered critically undercapitalized are generally required to be closed within 90 days.

If a financial institution accepts a Cease and Desist Order, it is referred to as a “consent order”.   When Regulators issue a Cease and Desist Order they have “determined that it had reason to believe that the Bank engaged in unsafe or unsound banking practices and violations of law and/or regulations”.

After “consenting” to a regulatory order, a bank will execute a “Stipulation to the Issuance of a Consent Order”.  Consent agreements allow a bank to agree with regulatory stipulations “without admitting or denying any charges of unsafe or unsound banking practices or violations of law or regulations relating to weaknesses in asset quality, capital adequacy, earnings, management effectiveness, liquidity, and sensitivity to market risk”.

Much more serious than a Consent Order is a prompt corrective action (PCA) directive which is a “formal action that requires an institution to take one or more specified actions to return to required minimum capital standards”.   Many institution are unable to comply with the terms of a PCA and a large percentage  wind up on the FDIC Failed Bank List.

The latest Quarterly Bank Profile revealed that the number of banks on the FDIC’s confidential Problem Bank List had increased from 860 to 884.  Almost 12% of all FDIC insured institutions are on the FDIC Problem Bank List.

Many of the banks receiving consent orders or prompt corrective action directives have serious deficiencies and are likely to wind up on the failed bank list.

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
(Consent Orders)

Gateway Business Bank, Cerritos, CA; FDIC-11-054b; FDIC-10-888k; in the amount of $25,000.00; Issued 3/7/11 – PDF

Ojai Community Bank; Ojai, CA; FDIC-11-101b; Issued 3/31/11 – PDF

Plumas Bank, Quincy, CA; FDIC-11-035b; Issued 3/18/11 – PDF

The Pueblo Bank and Trust Company, Pueblo, CO; FDIC-11-025b; Issued 3/25/11 – PDF

Artisans’ Bank, Wilmington, DE; FDIC-11-047b; Issued 3/3/11 – PDF

Bank of Naples, Naples, FL; FDIC-11-036b; Issued 3/8/11 – PDF

The Bank of Commerce, Sarasota, FL; FDIC-10-959b; Issued 3/30/11 – PDF

Bank of Idaho, Idaho Falls, ID; FDIC-11-003b; Issued 3/18/11 – PDF

Mercantile Bank, Quincy, IL; FDIC-11-012b; Issued 3/31/11 – PDF

Legacy Bank, Altoona, IA; FDIC-11-026b; Issued 3/17/11 – PDF

Heartland Bank, Leawood, KS; FDIC-10-914b; Issued 3/14/11 – PDF

United Kentucky Bank of Pendleton County, Inc., Falmouth, KY; FDIC-11-104b; Issued 3/16/11 – PDF

Alliance Banking Company, Winchester, KY; FDIC-10-847b; Issued 3/18/11 – PDF

Northpointe Bank, Grand Rapids, MI; FDIC-10-885b; Issued 3/30/11 – PDF

BANKWEST, Rockford, MN; FDIC-10-952b; Issued 3/17/11 – PDF

World’s Foremost Bank, Sidney, NE; FDIC-10-775b; FDIC-10-777k; in the amount of $250,000.00; Issued 3/3/11 – PDF

Greystone Bank, Raleigh, NC; FDIC-10-844b; Issued 3/1/11 – PDF

Greer State Bank, Greer, SC; FDIC-10-904b; Issued 3/1/11 – PDF

Arthur State Bank, Union, SC; FDIC-10-948b; Issued 3/30/11 – PDF

Synergy Bank, S.S.B., McKinney, TX; FDIC-10-235b; Issued 3/18/11 – PDF

The Business Bank, Appleton, WI; FDIC-10-945b; Issued 3/4/11 – PDF

Bancroft State Bank, Bancroft, WI; FDIC-10-936b; Issued 3/1/11 – PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(e), 12 U.S.C. § 1818(e)
(Removal and Prohibition Orders)

Troy Bank & Trust Company, Troy, AL; FDIC-09-318e; against Peter L. Cash; Issued 3/3/11 –  PDF

First Guaranty Bank, Hammond, LA; FDIC-09-501e; against Jamy L. Sibley (formerly Jamy L. Kiger); Issued 3/7/11 – PDF

The Park Avenue Bank, New York, NY; FDIC-10-781e; against Charles J. Antonucci; Issued 3/17/11 – PDF

Northwest Savings Bank, Warren, PA; FDIC-10-770e; against Lisa A. Alcorn; Issued 3/3/11 – PDF

First Reliance Bank, Florence, SC; FDIC-10-320e; against Antoinete B. Hill; Issued 3/3/11 – PDF

FirstBank Southwest, Amarillo, TX; FDIC-10-528e; against Megan Hahn; Issued 3/3/11 – PDF

Citizens State Bank of Luling, Luling, TX; FDIC-10-536e; against Edward S. Casseb; Issued 3/17/11 – PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 5(e), 12 U.S.C. § 1815(e)
(Cross Guarantee Liability)

Community Bank of Rowan, Salisbury, NC; FDIC-11-069kk; Issued 3/29/11 – PDF

Bank of Fort Bend, Sugar Land, TX; FDIC-10-708kk; Issued 3/29/11 – PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(i), 12 U.S.C. § 1818(i)
(Civil Money Penalties)

ServisFirst Bank, Birmingham, AL; FDIC-10-900k; in the amount of $7,500.00; Issued 3/1/11 – PDF

Gateway Business Bank, Cerritos, CA; FDIC-11-054b; FDIC-10-888k; in the amount of $25,000.00; Issued 3/7/11 – PDF

Integrity Bank & Trust, Monument, CO; FDIC-10-865k; in the amount of $3,500.00; Issued 3/28/11 – PDF

Regent Bank, Davie, FL; FDIC-11-049k; in the amount of $6,000.00; Issued 3/24/11 – PDF

Pulaski Savings Bank, Chicago, IL; FDIC-10-890k; in the amount of $1,500.00; Issued 3/28/11 – PDF

Central State Bank, Clayton, IL; FDIC-10-768k; in the amount of $1,155.00; Issued 3/8/11 – PDF

First Michigan Bank, Troy, MI; FDIC-10-769k; in the amount of $1,200.00; Issued 3/4/11 – PDF

World’s Foremost Bank, Sidney, NE; FDIC-10-775b; FDIC-10-777b; in the amount of $250,000.00; Issued 3/3/11 – PDF

AmBank, Silver City, NM; FDIC-10-569k; in the amount of $15,000.00; Issued 3/17/11 – PDF

The Farmers and Merchants Bank, Caldwell, OH; FDIC-10-789k; in the amount of $6,800.00; Issued 3/25/11 – PDF

Coatesville Savings Bank, Coatesville, PA; FDIC-11-071k; in the amount of $2,750.00; Issued 3/25/11 – PDF

Harleysville Savings Bank, Harleysville, PA; FDIC-10-878k; in the amount of $8,500.00; Issued 3/18/11 – PDF

Northstar Bank of Texas, Denton, TX; FDIC-10-928k; in the amount of $9,500.00; Issued 3/31/11 –  PDF

Citizens State Bank of Luling, Luling, TX; FDIC-09-645k; in the amount of $5,000.00 against Edward S. Casseb; Issued 3/17/11 – PDF

Mitchell Bank, Milwaukee, WI; FDIC-09-675k; in the amount of $3,060.00; Issued 3/25/11 – PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. § 1831o
(Prompt Corrective Actions)

Bank of Choice, Greeley, CO; FDIC-11-038PCAS; Issued 3/14/11 – PDF

Signature Bank, Windsor, CO; FDIC-11-122PCAS; Issued 3/31/11 – PDF

Bank of Shorewood, Shorewood, IL; FDIC-11-115PCAS; Issued 3/25/11 – PDF

Oxford Bank, Oxford, MI; FDIC-10-889PCAS; Issued 3/4/11 –  PDF

Heritage Banking Group, Carthage, MS; FDIC-10-907PCAS; Issued 3/2/11 – PDF

Summit Bank, Burlington, WA; FDIC-11-136PCAS; Issued 3/2/11 – PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(p), 12 U.S.C. § 1818(p)

Banco Buenaventura, Oxnard, CA; FDIC-10-593p; Issued 3/29/11 – PDF

American Home Bank, Chicago, IL; FDIC-10-874p; Issued 3/16/11 – PDF

TERMINATIONS

Orders Terminating Consent Orders and Cease and Desist Orders

Professional Business Bank, Pasadena, CA; Cert. No. 57148; Merged Into and now known as: Professional Business Bank, Pasadena, CA; Cert. No. 58674; FDIC-09-371b; Issued 3/28/11 – PDF

Sunshine State Community Bank, Port Orange, FL; FDIC-09-324b; Issued 3/4/11 – PDF

Enterprise Banking Company, McDonough, GA; FDIC-09-462b; Issued 3/30/11 – PDF

Citizens Bank of Effingham, Springfield, GA; FDIC-10-102b; Issued 3/3/11 – PDF

Town Community Bank and Trust, Antioch, IL; FDIC-09-689b; Issued 3/31/11 – PDF

Benchmark Bank, Aurora, IL; FDIC-09-404b; Issued 3/31/11 – PDF

Broadway Bank, Chicago, IL; FDIC-09-573b; Issued 3/31/11 – PDF

Citizens Bank and Trust Company of Chicago, Chicago, IL; FDIC-09-248b; Issued 3/31/11 – PDF

Lincoln Park Savings Bank, Chicago, IL; FDIC-09-250b; Issued 3/31/11 – PDF

New Century Bank, Chicago, IL; FDIC-09-348b; Issued 3/31/11 – PDF

Ravenswood Bank, Chicago, IL; FDIC-09-155b; Issued 3/31/11 – PDF

Shorebank, Chicago, IL; FDIC-09-074b; Issued 3/31/11 – PDF

Heritage Community Bank, Glenwood, IL; FDIC-08-131b; Issued 3/31/11 – PDF

Community Bank of Lemont, Lemont, IL; FDIC-08-372b; Issued 3/31/11 – PDF

Bank of Lincolnwood, Lincolnwood, IL; FDIC-09-135b; Issued 3/31/11 – PDF

Wheatland Bank, Naperville, IL; FDIC-09-308b; Issued 3/31/11 – PDF

InBank, Oak Forest, IL; FDIC-09-275b; Issued 3/31/11 – PDF

Palos Bank and Trust Company, Palos Heights, IL; FDIC-09-279b; Issued 3/31/11 – PDF

Peotone Bank and trust Company, Peotone, IL; FDIC-09-184b; Issued 3/31/11 – PDF

Valley Community Bank, St. Charles, IL; FDIC-09-214b; Issued 3/31/11 –  PDF

First Dupage Bank, Westmont, IL; FDIC-08-387b; Issued 3/31/11 – PDF

Bank of Franklin, Meadville, MS; FDIC-09-562b; Issued 3/31/11 – PDF

High Desert State Bank, Albuquerque, NM; FDIC-09-127b; Issued 3/14/11 – PDF

The First State Bank, Camargo, OK; FDIC-10-908b; Issued 3/30/11 – PDF

American State Bank, Tulsa, OK; FDIC-09-755b; Issued 3/30/11 – PDF

First Bank & Trust, Brookings, SD; FDIC-07-228b; Issued 3/14/11 – PDF

AmericanWest Bank, Spokane, WA; FDIC-09-144b; Issued 3/24/11 – PDF

Orders Terminating the Supervisory Prompt Corrective Action Directive

First State Bank, Sarasota, FL; FDIC-09-333PCAS; Issued 3/30/11 – PDF

The First State Bank, Camargo, OK; FDIC-10-915PCAS; Issued 3/30/11 – PDF

Prosper Bank, Prosper, TX; FDIC-10-207PCAS; Issued 3/14/11 – PDF

NOTICE ISSUED
(Note: A Notice is a proposal enforcement action and is not a final decision or order by the FDIC)

Notice of Charges For an Order to Cease and Desist and Notice of Hearing

Republic Bank & Trust Company, Louisville, KY; FDIC-10-079b; Issued 2/9/11 – PDF

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