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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