FDIC Issues 76 Enforcement Actions In April Against Problem Banks

The FDIC issued 76 enforcements actions in April against individuals and problem banks, down slightly from 87 in March.  Included in the enforcement actions were 8 removal and prohibition orders, 4 prompt corrective actions, 21 consent orders, 21 civil money penalties, 1 modification order and 20 orders terminating consent orders or prompt correction directives and 1 adjudicated decision.

Regulators use enforcement actions when regulators have doubts about the ability of an institution to implement required corrective action or to address serious operating and financial deficiencies.  The FDIC is required to close critically undercapitalized institutions within 90 days.

A consent order is the term used when a financial institution accepts a Cease and Desist Order.  Typically, regulators will issue a Cease and Desist Order when 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 a bank “consents” to a regulatory action, it will execute a “Stipulation to the Issuance of a Consent Order”.  A bank that agrees to regulatory actions through a consent agreement are allowed to accept regulatory findings and orders “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”.

A prompt corrective action (PCA) is much more serious than a consent order and is a “formal action that requires an institution to take one or more specified actions to return to minimum capital standards”.  A large percentage of banks receiving PCAs are unable to comply with regulatory orders and wind up as failed banks.

The recently released FDIC Quarterly Banking Profile for March 31, 2011, shows a total of 888 banks on the confidential Problem Bank List, up from 884 at year end.  Of the 7,575 FDIC insured institutions at March 31, 2011, 11.7% are on the Problem Bank List.

The full list of FDIC enforcement actions for April 2011 is included below.

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

The Citizens Bank, Enterprise, AL; FDIC-11-056b; Consent Order; Issued 4/26/11 – PDF

Security First Bank, Fresno, CA; FDIC-11-135b; Consent Order; Issued 4/21/11 – PDF

Central Florida State Bank, Belleview, FL; FDIC-10-630b; Consent Order; Issued 4/8/11 – PDF

Florida Citizens Bank, Gainesville, FL; FDIC-10-709b; Issued 4/20/11 – PDF

Lender Processing Services, Inc., Jacksonville, FL; and DocX, LLC, Alpharetta, GA; and LPS Default Solutions, Inc., Mendota Heights, MN; FDIC-11-204b; Issued 4/13/11 – PDF

Suburban Bank & Trust Company, Elmhurst, IL; FDIC-10-876b; Issued 4/5/11 – PDF

Parkway Bank and Trust Company, Harwood Heights, IL; FDIC-10-935b; Issued 4/29/11 – PDF

Community Bank of Oak Park River Forest, Oak Park, IL; FDIC-11-051b; Issued 4/4/11 – PDF

State Central Bank, Keokuk, IA; FDIC-11-106b; Issued 4/27/11 – PDF

Kendall State Bank, Valley Falls, KS; FDIC-11-097b; Issued 4/8/11 – PDF

Signature Bank, Bad Axe, MI; FDIC-10-910b; Issued 4/29/11 – PDF

Ally Financial Inc., Detroit, Michigan;  and  Ally Bank, Midvale, Utah;  and Residential Capital, LLC, Minneapolis, Minnesota;  and GMAC  Mortgage, LLC, Fort Washington, Pennsylvania; FDIC-11-123b; Issued 4/13/11 – PDF

Bank of the Carolinas, Mocksville, NC; FDIC-11-064b; Issued 4/27/11 – PDF

Quality Bank, Fingal, ND; FDIC-11-118b; Issued 4/8/11 – PDF

People’s Bank and Trust Company of Pickett County, Byrdstown, TN; FDIC-10-923b; Issued 4/13/11 – PDF

First Alliance Bank, Cordova, TN; FDIC-10-508b; Issued 4/22/11 – PDF

Community South Bank, Parsons, TN; FDIC-10-264b; Issued 4/6/11 – PDF

Valliance Bank, McKinney, TX; FDIC-11-105b; Issued 4/21/11 – PDF

Huntington State Bank, Huntington, TX; FDIC-11-057b; Issued 4/4/11 – PDF

Texas Savings Bank, Snyder, TX; FDIC-11-120b; Issued 4/5/11 – PDF

First State Bank, Danville, VA; FDIC-10-850b; Issued 4/20/11 – PDF

MERSCORP, Inc., and Mortgage Electronic Registration Systems, Inc., Reston, VA; FDIC-11-194b; Issued 4/13/11 – PDF

Ally Financial Inc., Detroit, MI; and Ally Bank, Midvale, UT; and Residential Capital, LLC, Minneapolis, MN; and GMAC Mortgage, LLC, Fort Washington, PA; FDIC-11-123b; Issued 4/13/11

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

Citizens Bank of Northern California, Nevada City, CA; FDIC-10-632e; against Melvin Rohs; Issued 4/27/11 – PDF

PeoplesSouth Bank, Colquitt, GA; FDIC-10-582e; against James E. Goldsborough; Issued 4/27/11 – PDF

First Security Trust and Savings Bank, Elmwood Park, IL; FDIC-09-414e; against Jeffrey L. Gonsiewski; Issued 4/27/11 – PDF

Bank Leumi USA, New York, NY; FDIC-11-032e; against Roberto E. Rodriguez; Issued 4/27/11 – PDF

First-Citizens Bank & Trust Company, Raleigh, NC; FDIC-10-750e; against James Scott Sessoms; Issued 4/27/11 – PDF

American Bank Center, Dickerson, ND; FDIC-09-205e; against Howard R Palmer; Issued 4/15/11 – PDF

The First State Bank, Huntsville, TX; FDIC-09-548e; against Melissa M. Randall; Issued 4/27/11 – PDF

The Park Bank, Madison, WI; FDIC-09-283e; against Amy Strait; Issued 4/27/11 – PDF

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

Union State Bank, Pell City, AL; FDIC-11-157k; in the amount of $8,000.00; Issued 4/19/11 – PDF

Montgomery Bank & Trust, Ailey, GA; FDIC-10-587k; against Gregory A. Morris in the amount of $5,000.00; Issued 4/15/11 – PDF
.
First Bank of Coastal Georgia, Pembroke, GA; FDIC-11-108k; in the amount of $6,500.00; Issued 4/8/11 – PDF

HomeStar Bank and Financial Services, Manteno, IL; FDIC-10-840k; in the amount of $4,500.00; Issued 4/18/11 – PDF

Norstates Bank, Waukegan, IL; FDIC-10-730k; in the amount of $12,000.00; Issued 4/29/11 – PDF

Norstates Bank, Waukegan, IL; FDIC-10-731k; in the amount of $950.00; Issued 4/29/11 – PDF

State Bank, Wonder Lake, IL; FDIC-10-820k; in the amount of $6,000.00; Issued 4/14/11 – PDF

The Bath State Bank, Bath, IN; FDIC-11-042k; in the amount of $8,000.00; Issued 4/21/11 – PDF

Community Bank, Noblesville, IN; FDIC-10-932k; in the amount of $2,650.00; Issued 4/21/11 – PDF

Louisa Community Bank, Louisa, KY; FDIC-10-736k; in the amount of $1,500.00; Issued 4/18/11 – PDF

Bank of Maringouin, Maringouin, LA; FDIC-10-866k; in the amount of $5,000.00; Issued 4/20/11 – PDF

Michigan Commerce Bank, Ann Arbor, MI; FDIC-11-078k; in the amount of $5,000.00; Issued 4/29/11 – PDF

Century Bank, Lucedale, MS; FDIC-10-834k; in the amount of $3,000.00; Issued 4/14/11 – PDF

American Bank Center, Dickinson, ND; FDIC-09-206k; Amending an Order against Howard R. Palmer in the amount of $5,000.00; Issued 4/15/11 – PDF

Regent Bank, Nowata, OK; FDIC-10-833k; in the amount of $7,700.00; Issued 4/14/11 – PDF

First State Bank, Tahlequah, OK; FDIC-10-927k; in the amount of $1,680.00; Issued 4/14/11 – PDF

American Bank & Trust of the Cumberlands, Livington, TN; FDIC-11-159k; in the amount of $8,085.00; Issued 4/14/11 – PDF

Texas Bank, Henderson, TX; FDIC-11-117k; in the amount of $6,000.00; Issued 4/28/11 – PDF

Allegiance Bank Texas, Houston, TX; FDIC-11-149k; in the amount of $2,500.00; Issued 4/11/11 – PDF

The First State Bank, Huntsville, TX; FDIC-09-720k; against Melissa M. Randall in the amount of $1,000.00; Issued 4/27/11 – PDF

Texas Savings Bank, Snyder, TX; FDIC-10-872k; in the amount of $3,395.00; Issued 4/14/11 – PDF

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

Community South Bank, Parsons, TN; FDIC-11-086PCAS; Issued 3/18/11 – PDF

First International Bank, Plano, TX; FDIC-11-189PCAS; Issued 4/5/11 – PDF

Summit Bank, Burlington, WA; FDIC-11-210PCAS; Issued 4/13/11 – PDF

Community Bank of Central Wisconsin, Colby, WI; FDIC-11-077PCAS; Issued 4/14/11 – PDF

MODIFICATION

The Community’s Bank, Bridgeport, CT; FDIC-09-744b; Consent Order – PDF; Modification of Consent Order Issued 4/27/11 – PDF

TERMINATIONS

Orders Terminating Consent Orders and Cease and Desist Orders

CB&S Bank, Inc., Russellville, AL; FDIC-10-176b; Issued 4/28/11 – PDF

First Southern Bank, Batesville, AR; FDIC-10-884b; Issued 4/7/11 – PDF

Legacy Bank, Scottsdale, AZ; FDIC-09-321b; Issued 4/14/11 – PDF

Community Bank of Manatee, Lakewood Ranch, FL; FDIC-09-569b; Issued 4/1/11 – PDF

Arcola Homestead Savings Bank, Arcola, IL; FDIC-10-167b; Issued 4/1/11 – PDF

Strategic Capital Bank, Champaign, IL; FDIC-08-205b; Issued 4/1/11 – PDF

Corn Belt Bank and Trust Company, Pittsfield, IL; FDIC-08-356b; Issued 4/1/11 – PDF

Alliance Banking Company, Winchester, KY; FDIC-08-223b; Issued 3/18/11 – PDF

Peoples State Bank, Hamtramck, MI; FDIC-09-129b; Issued 4/14/11 – PDF

Main Street Bank, Northville, MI; FDIC-08-116b; Issued 4/14/11 – PDF

New Liberty Bank, Plymouth, MI; FDIC-09-193b; Issued 4/14/11 – PDF

CF Bancorp, Port Huron, MI; FDIC-09-676b; Issued 4/14/11 – PDF

Lakeside Community Bank, Sterling Heights, MI; FDIC-09-326b; Issued 4/14/11 – PDF

Congaree State Bank, West Columbia, SC; FDIC-10-047b; Issued 4/8/11 – PDF

Texas Country Bank, Lakeway, TX; FDIC-10-036b; Issued 4/29/11 – PDF

CIT Bank, Salt Lake City, UT; FDIC-09-337b; Issued 4/12/11 – PDF

Badger State Bank, Cassville, WI; FDIC-09-077b; Issued 4/12/11 – PDF

Evergreen State Bank, Stoughton, WI; FDIC-08-410b; Issued 4/12/11 – PDF

Order Terminating Supervisory Prompt Corrective Action Directive

First Southern Bank, Batesville, AR; FDIC-10-901PCAS; Issued 4/7/11 – PDF

High Desert State Bank, Albuquerque, NM; FDIC-10-017PCAS; Issued 4/4/11 – PDF

ADJUDICATED DECISION

Frontier State Bank, Oklahoma City, OK; FDIC-07-288b; Decision and Order to Cease and Desist; Issued 4/12/11 – PDF

 

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