FDIC Issues 57 Enforcement Actions Against Problem Banks In December

The FDIC issued 57 enforcement actions against banks in December 2011, down from 72 in November.

The December enforcement actions included 9 consent orders, 19 civil money penalties, 4 prompt corrective actions, 3 voluntary terminations of insurance, 12 removal and prohibition orders and 10 orders terminating previous consent orders and cease and desist orders.

A consent order is a formal enforcement action issued by regulators to a bank.  The bank is required by the consent order to stop unsafe or unsound practices.  Once a bank materially complies with the consent order, the regulatory order may be terminated.

Far more serious than a consent order is a prompt corrective action notice (PCA) under which a bank is required to take immediate action to return to “minimum capital standards”.  Generally, a bank that is issued a PCA is considered to be operating in “an unsafe and unsound condition”.  An institution receiving a prompt corrective action is considered to be undercapitalized, significantly undercapitalized or critically undercapitalized.

It is highly likely that banks receiving a consent order or prompt corrective action are on the FDIC confidential problem bank list.  Statistics from the FDIC’s last Quarterly Banking Profile show that almost 12% of all banks are on the Problem Bank List.  The number of banks currently considered to be problem banks is 844 at September 30, 2011, compared to 865 in the previous quarter.

The banks on the Problem Bank List have weak capital positions and operational deficiencies which triggered regulatory actions.

Listed below are the enforcement actions taken by the FDIC for December 2011.

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
(Cease-and-Desist)

Chambers Bank, Danville, AR; FDIC-11-597b; Issued 12/21/11 – PDF

Colorado East Bank & Trust, Lamar, CO; FDIC-11-522b; Issued 12/1/11 – PDF

First Bank of Delaware, Wilmington, DE; FDIC-11-669b; Issued 12/29/11 – PDF

SouthernTrust Bank, Goreville, IL; FDIC-11-507b; Issued 12/13/11 – PDF

Republic Bank & Trust Company, Louisville, KY; FDIC-10-079b; FDIC-10-216k; in the amount of $900,000.00; Issued 12/8/11 – PDF

United Bank and Trust Company, Versailles, KY; FDIC-11-609b; Issued 12/16/11 – PDF

American Gateway Bank, Port Allen, LA; FDIC-11-607b; Issued 12/21/11 – PDF

Woodland Bank, Deer River, MN; FDIC-11-516b; Issued 12/19/11 – PDF

Pacific International Bank, Seattle, WA; FDIC-11-670b; Issued 12/2/11 – PDF

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

Premier Business Bank, Los Angeles, CA; FDIC-11-600e; FDIC-11-601k; against David Y. Lee in the amount of $75,000.00; Issued 12/19/11 – PDF

Citizens Bank and Trust of West Georgia, Carrollton, GA; FDIC-10-701e; FDIC-10-702k; against Connie F. Greene in the amount of $10,000.00; Issued 12/20/11 – PDF

Appalachian Community Bank, Ellijay, GA; FDIC-11-579e; against Tracy R. Newton; Issued 12/20/11 – PDF

Hancock Bank, Gulfport, MS; FDIC-10-851e; against Lisa A. Brooks; Issued 12/20/11 – PDF

Bank of Dwight, Dwight, IL; NKA Bank of Pontiac, Pontiac, IL; FDIC-10-442e; against Kelly D. Klingler; Issued 12/20/11 – PDF

Silver State Bank, Henderson, NV; FDIC-11-605e; FDIC-11-606k; against Gary A. Gardner in the amount of $1,000.00; Issued 12/20/11 – PDF

Branch Banking and Trust Company, Winston-Salem, NC; FDIC-09-241e; against Bonnie Jean Bain; Issued 12/20/11 – PDF

Metropolitan Savings Bank, Pittsburgh, PA; FDIC-11-293e; against Donna Shebetich; Issued 12/6/11 – PDF

South Carolina Community Bank, Columbia, SC; FDIC-11-030e; against Torlando Ramont Childress; Issued 12/6/11 – PDF

Community South Bank, Parsons, TN; FDIC-11-050e; against Jeffrey L. Phillips; Issued 12/20/11 – PDF

Commercial State Bank, Andrews, TX; FDIC-10-665e; against Richard Shay Wallace; Issued 12/20/11 – PDF

Sterling Bank, Houston, TX; FDIC-09-360e; against Kim L. Arnold; Issued 12/6/11 – PDF

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

Premier Business Bank, Los Angeles, CA; FDIC-11-600e; FDIC-11-601k; Order of Removal From Office and Prohibition From Further Participation and Order to Pay against David Y. Lee in the amount of $75,000.00; Issued 12/19/11 – PDF

Bank of the West, San Francisco CA; FDIC-11-662k; in the amount of $135,000.00; Issued 12/22/11 – PDF

Premier Community Bank of the Emerald Coast, Crestview, FL; FDIC-11-525k; in the amount of $5,000.00; Issued 12/5/11 – PDF

Citizens Bank and Trust of West Georgia, Carrollton, GA; FDIC-10-701e; FDIC-10-702k; Order of Prohibition From Further Participation and Order to Pay against Connie F. Greene in the amount of $10,000.00; Issued 12/20/11 – PDF

FirstSecure Bank and Trust Co., Palos Hills, IL; FDIC-11-172k; in the amount of $3,000.00; Issued 12/30/11 – PDF

The Peoples Bank, Pratt, KS; FDIC-11-672k; in the amount of $3,270.00; Issued 12/27/11 – PDF

Republic Bank & Trust Company, Louisville, KY; FDIC-10-079b; FDIC-10-216k; Consent Order; Order to Pay; and Order Terminating Order to Cease and Desist in the amount of $900,000.00; Issued 12/8/11 – PDF

East Boston Savings Bank, Boston, MA; FDIC-11-558k; in the amount of $35,000.00; Issued 12/13/11 – PDF

First Independence Bank, Detroit, MI; FDIC-11-453k; in the amount of $4,000.00; Issued 12/7/11 – PDF

Silver State Bank, Henderson, NV; FDIC-11-605e; FDIC-11-606k; Order of Prohibition From Further Participation and Order to Pay against Gary A. Gardner in the amount of $1,000.00; Issued 12/20/11 – PDF

First Trust and Savings Bank, Oneida, TN; FDIC-11-282k; in the amount of $1,800.00; Issued 12/21/11 – PDF

Commercial State Bank, Andrews, TX; FDIC-11-619k; against Richard Shay Wallace in the amount of $5,000.00; Issued 12/20/11 – PDF

Triumph Savings Bank, SSB, Dallas, TX; FDIC-11-656k; in the amount of $9,825.00; Issued 12/2/11 – PDF

United Central Bank, Garland, TX; FDIC-11-519k; in the amount of $9,850.00; Issued 12/5/11 – PDF

Justin State Bank, Justin, TX; FDIC-11-117k; in the amount of $16,500.00; Issued 12/2/11 – PDF

The Village Bank, Saint George, UT; FDIC-11-604k; in the amount of $3,960.00; Issued 12/21/11 – PDF

Portage County Bank, Almond, WI; FDIC-11-231k; in the amount of $1,200.00; Issued 12/30/11 – PDF

Cleveland State Bank, Cleveland, WI; FDIC-11-162k; in the amount of $5,000.00; Issued 12/30/11 – PDF

First Citizens State Bank, Whitewater, WI; FDIC-11-128k; in the amount of $800.00; Issued 12/30/11 – PDF

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

Mile High Banks, Longmont, CO; FDIC-11-584PCAS; Issued 12/1/11 – PDF

The First State Bank, Stockbridge, GA; FDIC-11-688PCAS; Issued 12/22/11 – PDF

Waukegan Savings Bank, Waukegan, IL; FDIC-11-610PCAS; Issued 12/14/11 – PDF

Tennessee Commerce Bank, Franklin, TN; FDIC-11-618PCAS; Issued 11/2/11 – PDF

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

Fireside Bank, Pleasanton, CA; FDIC-11-599p; Issued 12/8/11 – PDF

First Investors Federal Savings Bank, Edison, NJ; FDIC-11-639p; Issued 12/29/11 – PDF

Greystone Bank, Raleigh, NC; FDIC-11-564p; Issued 12/28/11 – PDF

TERMINATIONS

Orders Terminating Consent Orders and Cease and Desist Orders

First Standard Bank, Los Angeles, CA; Now Known As Open Bank, Los Angeles, CA; FDIC-07-273b; Issued 12/29/11 – PDF

First Standard Bank, Los Angeles, CA; Now Known As Open Bank, Los Angeles, CA; FDIC-09-349b; Issued 12/29/11 – PDF

Old Harbor Bank, Clearwater, FL; FDIC-10-463b; Issued 12/9/11 – PDF

Premier Community Bank of the Emerald Coast, Crestview, FL; FDIC-10-648b; Issued 12/22/11 – PDF

AztecAmerica Bank, Berwyn, IL; FDIC-10-129b; Issued 12/30/11 – PDF

First Security Bank & Trust Company, Norton, KS; FDIC-09-616b; Issued 12/5/11 – PDF

United Bank and Trust Company, Versailles, KY; FDIC-09-485b; Issued 12/16/11 – PDF

Citizens Bank & Trust Company, Covington, LA; FDIC-09-503b; Issued 12/14/11 – PDF

Citizens State Bank, New Baltimore, MI; FDIC-09-391b; Issued 12/8/11 – PDF

West One Bank, Kalispell, MO; FDIC-10-592b; Issued 12/16/11 – PDF

 

 

 

 

 

Speak Your Mind

*