FDIC Issues 42 Enforcement Actions Against Problem Banks In January

The FDIC posted today the list of enforcement actions taken in January 2012 against problem banks.  A total of 42 enforcements actions were taken in January compared to 57 in December.

Enforcement actions for January included 13 consent orders, 11 civil money penalties, 5 prompt corrective actions and 7 orders to terminate consent orders and cease and desist orders.

Most of the banks subject to FDIC enforcement actions are probably on the FDIC’s confidential list of Problem Banks.  The latest FDIC statistics reveal that 844 banks, representing 11.3% of all FDIC insured banks are on the Problem Bank List. There is currently a total of 7,437 banks and savings associations whose deposits are insured by the FDIC.

A consent order is issued by regulators to a bank that is engaging in unsafe or unsound banking practices.  Signing the consent order commits the bank to resolving the issues cited by the FDIC in the consent order.  After a bank has materially complied with a consent order, the regulatory order can be terminated.

A prompt corrective action notice (PCA) is a far more serious regulatory action than a consent order.  Banks issued a PCA are directed to take immediate action to return to “minimum capital standards”.  Banks receiving a PCA are considered to be operating in an unsafe and unsound manner and are classified as undercapitalized, significantly undercapitalized or critically undercapitalized.

Listed below are the enforcement actions taken by the FDIC for January 2012.

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

First State Bank, Crossett, AR; FDIC-11-642b; Issued 1/3/12 – PDF

Metropolitan Bank, Oakland, CA; FDIC-11-664b; Issued 1/19/12 – PDF

EuroBank, Coral Gables, FL; FDIC-10-585b; Issued 1/27/12 – PDF

Rabun County Bank, Clayton, GA; FDIC-11-529b; Issued 1/27/12 – PDF

The Farmers Bank, Forsyth, GA; FDIC-11-641b; Issued 1/13/12 – PDF

Farmers & Merchants Bank, Statesboro, GA; FDIC-11-643b; Issued 1/27/12 – PDF

Prairie Community Bank, Marengo, IL; FDIC-11-557b; Issued 1/20/12 – PDF

Farmers State Bank of Sublette, Sublette, IL; FDIC-11-520b; Issued 1/10/12 – PDF

Crown Bank, Edina, MN; FDIC-11-578b; Issued 1/12/12 – PDF

Mariner’s Bank, Edgewater, NJ; FDIC-11-583b; Issued 1/27/12 – PDF

The First State Bank, Ryan, OK; FDIC-11-608b; Issued 1/10/12 – PDF

United Bank of Philadelphia, Philadelphia, PA; FDIC-11-695b; Issued 1/31/12 – PDF

Freedom Bank, Inc., Belington, WV; FDIC-11-644b; Issued 1/27/12 – PDF

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

Carrollton Bank, Carrollton, IL; FDIC-10-788e; against Robert J. Tonsor; Issued 1/20/12 – PDF

Nova Bank, Berwyn, PA; FDIC-11-536e; against Thomas J. Patterson; Issued 1/26/12 – PDF

FirstBank, Lexington, TN; FDIC-11-495e; against James E. Chavez; Issued 1/20/12 – PDF

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

Flanagan State Bank, Flanagan, IL; FDIC-11-406k; in the amount of $17,000.00; Issued 1/6/12 – PDF

Grabill Bank, Grabill, IN; FDIC-11-317k; in the amount of $13,500.00; Issued 1/26/12 – PDF

Grabill Bank, Grabill, IN; FDIC-11-337k; in the amount of $3,240.00; Issued 1/26/12 – PDF

Bank of Wolcott, Wolcott, IN; FDIC-11-660k; in the amount of $1,850.00; Issued 1/26/12 – PDF

Bank of Louisiana, New Orleans, LA, FDIC-11-675k; in the amount of $10,000.00; Issued 1/31/12 – PDF

OneUnited Bank, Boston, MA; FDIC-11-585k; in the amount of $4,000.00; Issued 1/5/12 – PDF

Tri-County Trust Company, Glasgow, MO; FDIC-11-582k; in the amount of $1,500.00; Issued 1/4/12 – PDF

First Security Bank, Bozeman, MT; FDIC-11-713k; in the amount of $3,520.00; Issued 1/25/12 –PDF

The Old Fort Banking Company, Old Fort, OH; FDIC-11-422k; in the amount of $5,815.00; Issued 1/13/12 – PDF

American City Bank of Tullahoma, Tullahoma, TN; FDIC-11-737k; in the amount of $10,010.00; Issued 1/30/12 – PDF

Wolf River Community Bank, Hortonville, WI; FDIC-11-396k; in the amount of $5,500.00; Issued 1/11/12 – PDF

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

Sunrise Bank, Valdosta, GA; FDIC-11-654PCAS; Issued 1/23/12 – PDF

1st Commerce Bank, North Las Vegas, NV; FDIC-11-655PCAS; Issued 1/23/12 – PDF

Sunrise Bank of Albuquerque, Albuquerque, NM; FDIC-11-651PCAS; Issued 1/20/12 – PDF

Pisgah Community Bank, Ashville, NC; FDIC-11-653PCAS; Issued 1/20/12 – PDF

First Carolina State Bank, Rocky Mount, NC; FDIC-11-652PCAS; Issued 1/23/12 – PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 19, 12 U.S.C. § 1829
(Section 19)

Antoinette M. Callahan; FDIC-11-414L; Order Granting Permission to File Application and Approving Application for Consent to Participate in the Affairs of any Insured Depository Institution; Issued 1/30/12 – PDF

Charessa Denese Vaughn, FDIC-11-637L; Order Granting Permission to File Application and Approving Application for Consent to Participate in the Affairs of any Insured Depository Institution; Issued 1/30/12 – PDF

TERMINATIONS

Orders Terminating Consent Orders and Cease and Desist Orders

Plaza Bank, Irvine, CA; FDIC-11-312b; Issued 1/19/12 – PDF

Fireside Bank, Pleasanton, CA; FDIC-09-727b; Issued 1/13/12 – PDF

Country Bank, Aledo, IL; FDIC-10-864b; Issued 1/18/12 – PDF

Farmers State Bank of Sublette, Sublette, IL; FDIC-10-531b; Issued 1/10/12 – PDF

Royal Bank America, Narberth, PA; FDIC-09-282b; Issued 1/24/12 – PDF

Main Street Bank, Kingwood, TX; FDIC-10-321b; Issued 1/23/12 – PDF

Ridgestone Bank, Brookfield, WI; FDIC-09-700b; Issued 1/19/12 – PDF

Order Terminating Supervisory Prompt Corrective Action Directive

Country Bank, Aledo, IL; FDIC-11-555PCAS; Issued 1/18/12 – PDF

ADMINISTRATIVE HEARINGS SCHEDULED FOR MARCH 2012

Freedom Bank of America, Saint Petersburg, Florida; FDIC-11-072b; Section 8(b) Proceeding

Date: March 5, 2012
Location: Tampa, Florida
FDIC Contacts: John B. Parker, Senior Regional Attorney
Patrice Walker, Senior Regional Attorney

Cornerstone Community Bank, Saint Petersburg, Florida; FDIC-10-801b; Section 8(b) Proceeding

Date: March 12, 2012
Location: Tampa, Florida
FDIC Contacts:

John B. Parker, Senior Regional Attorney
Patrice Walker, Senior Regional Attorney

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