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 AttorneyCornerstone 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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