FDIC Issues 53 Enforcement Actions To Problem Banks In July

The FDIC had another busy month dealing with problem banks in July.  A total of 53 enforcement actions were taken against individuals and banks in July.  Included in the July enforcement actions were 11 consent orders, 2 prompt corrective actions, 11 terminations of previous actions and 19 civil money penalties.

Formal enforcement actions by regulators are publicly disclosed and issued when regulators believe that banks have engaged in “unsafe or unsound” banking practices and violations of law or regulations.

A bank that executes a Consent Order agrees with regulatory 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 order is a more serious enforcement action “that requires an institution to take one or more specified actions to return to required minimum capital standards”.  Many of the institutions receiving a prompt corrective action are unable to raise additional capital and wind up being closed by regulators.  Regulators are generally required to close “critically undercapitalized” banks within 90 days.

Most of the institutions receiving enforcements actions are likely to be on the confidential FDIC Problem Bank List.  Institutions listed as “problem banks” generally have inadequate capital levels and operational deficiencies.  The latest FDIC Quarterly Banking Profile classifies 865 banks as problem banks.  Approximately 12% of all FDIC insured institutions are currently classified as problem banks.

July FDIC Enforcement Actions

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

First State Bank, Lonoke, AR; FDIC-11-228b; Issued: 7/8/2011 – PDF

Plaza Bank, Irvine, CA; FDIC-11-312b; Issued: 7/28/11 – PDF

International Finance Bank, Miami, FL; FDIC-11-214b; Issued: 7/1/11 – PDF

ProBank, Tallahassee, FL; FDIC-10-796b; Issued: 7/28/11 – PDF

The Palm Bank, Tampa, FL; FDIC-11-220b; Issued: 7/27/11 – PDF

The Woodbury Banking Company, Woodbury, GA; FDIC-11-284b; Issued: 7/13/11 – PDF

Pacific Rim Bank, Honolulu, HI; FDIC-10-471b; Issued: 7/22/11 – PDF

Mercantile Bank, Quincy, IL; FDIC-11-372b; Issued: 7/28/11 – PDF

Alliance Bank, Lake City, MN; FDIC-11-125b; Issued: 7/7/11 – PDF

First State Bank, Cranford, NJ; FDIC-08-166b; Issued: 7/15/11 – PDF

The Citizens Bank of Logan, Logan, OH; FDIC-11-233b; Issued: 7/6/11 – PDF

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

The Exchange Bank of Alabama, Altoona, AL; FDIC-11-316k; in the amount of $9,460.00; Issued: 7/12/11 – PDF

Cathay Bank, Los Angeles, CA; FDIC-11-344k; in the amount of $17,710.00; Issued: 7/11/11 – PDF

Community Business Bank, West Sacramento, CA; FDIC-11-375k; in the amount of $6,545.00; Issued: 7/27/11 – PDF

American Enterprise Bank of Florida, Jacksonville, FL; FDIC-11-332k; in the amount of $14,500.00; Issued: 7/20/11 – PDF

Citizens State Bank, Lena, IL; FDIC-11-140k; in the amount of $1,950.00; Issued: 7/15/11 – PDF

Bank of Palatine, Palatine, IL; FDIC-10-946k; in the amount of $3,500.00; Issued: 7/22/11 – PDF

Petefish, Skiles & Co., Virginia, IL; FDIC-11-218k; in the amount of $9,000.00; Issued: 7/8/11 – PDF

The Peoples Bank of Bullitt County, Shepherdsville, KY; FDIC-11-238k; in the amount of $7,250.00; Issued: 7/15/11 – PDF

Central Co-operative Bank, Somerville, MA; FDIC-11-183k; in the amount of $15,400.00; Issued: 7/26/11 – PDF

Northpointe Bank, Grand Rapids, MI; FDIC-11-176k; in the amount of $8,855.00; Issued: 7/12/11 – PDF

1st State Bank, Saginaw, MI; FDIC-10-930k; in the amount of $3,000.00; Issued: 7/19/11 – PDF

Mid Penn Bank, Millersburg, PA; FDIC-11-336k; in the amount of $11,300.00; Issued: 7/1/11 – PDF

Western Bank, Coahoma, TX; FDIC-11-177k; in the amount of $7,805.00; Issued: 7/5/11 – PDF

Western Bank, Coahoma, TX; FDIC-11-178k; in the amount of $12,000.00; Issued: 7/5/11 – PDF

Schertz Bank & Trust, Schertz, TX; FDIC-11-241k; in the amount of $1,000.00; Issued: 7/6/11 – PDF

SunFirst Bank, St. George, UT; FDIC-11-240k; in the amount of $2,300.00; Issued: 7/11/11 – PDF

Mid America Bank, Janesville, WI; FDIC-11-151k; in the amount of $8,000.00; Issued: 7/27/11 – PDF

Mid America Bank, Janesville, WI; FDIC-11-152k, in the amount of $600.00; Issued: 7/27/11 – PDF

Bank of Ontario, Ontario, WI; FDIC-10-862k; in the amount of $1,740.00; Issued: 7/22/11 – PDF

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

SunFirst Bank, Saint George, UT; FDIC-11-419PCAS; Issued: 7/28/11 – PDF

Central Progressive Bank, Lacombe, LA; FDIC-11-271 PCAS; Issued: 7/25/11 – PDF

TERMINATIONS

Orders Terminating Consent Orders and Cease and Desist Orders

Colorado Capital Bank, Castle Rock, CO; FDIC-10-514b; Issued: 7/28/11 – PDF

Signature Bank, Windsor, CO; FDIC-09-438b; Issued: 7/25/11 – PDF

One Georgia Bank, Atlanta, GA; FDIC-09-741b; Issued: 7/28/11 – PDF

Mountain Heritage Bank, Clayton, GA; FDIC-09-117b; Issued: 7/28/11 – PDF

Princeville State Bank, Princeville, IL; FDIC-10-491b; Issued: 7/6/11 – PDF

Town & Country Bank (Now known as CrossFirst Bank), Leawood, KS; FDIC-09-166b; Issued: 7/20/11 – PDF

Bank of the Bluegrass and Trust Company, Lexington, KY; FDIC-08-061b; Issued: 7/29/11 – PDF

Bank of Greensburg, Greensburg, LA; FDIC-09-403b; Issued: 7/8/11 – PDF

Earthstar Bank, Southampton, PA; FDIC-08-080b; Issued: 7/15/11 – PDF

Utah Community Bank, Sandy, UT; FDIC-09-315b; Issued: 7/29/11 – PDF

Cascade Bank, Everett, WA; Merged Into and Now Known As: Opus Bank, Redondo Beach, CA; FDIC-10-322b; Issued: 7/1/11 – PDF

Orders Terminating Supervisory Prompt Corrective Action Directive

Colorado Capital Bank, Castle Rock, CO; FDIC-11-089PCAS; Issued: 7/29/11 – PDF

Signature Bank, Windsor, CO; FDIC-11-122PCAS; Issued: 7/25/11 – PDF

Security Bank of North Fulton, Alpharetta, GA; FDIC-09-310PCAP; Issued: 7/28/11 – PDF

Evergreen State Bank, Stoughton, W I; FDIC-10-859PCAS; Issued: 7/19/11 – PDF

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