FDIC Cites 30 Banks For “Unsafe or Unsound” Banking Practices

August 27, 2010 – The FDIC today released a list of orders of administrative enforcement actions taken against banks, including 30 cease and desist consent orders.

A cease and desist order is issued when the FDIC has “determined that it had reason to believe that the Bank engaged in unsafe or unsound banking practices and violations of law and/or regulations.”

It is highly likely that banks  issued cease and desist orders or prompt corrective actions are on the Problem Bank List.  The Problem Bank List contains the names of institutions that have weak capital positions caused by large loan losses or operational deficiencies that usually lead to failure. The FDIC does not publicize the list for fear of causing depositor withdrawals and bad publicity which would only serve to hasten the bank’s closing.

As of the latest report released by the FDIC there were 775 problem banks at March 31, 2010 up from 702 at the end of  2009.  Total assets held by the troubled institutions is $431.2  billion, up from $402.8 billion at the end of 2009.

Given the serious financial issues cited by the FDIC for the banks listed below, expect many of these institutions to wind up on the Failed Bank List. Banking depositors with balances in excess of the FDIC deposit insurance limit should consider this list as “fair warning” from the FDIC and take appropriate action to avoid potential losses.


CB&S Bank, Inc., Russellville, AL; FDIC-10-176b; Issued 7/8/10 – PDF

Summit Bank, Prescott, AZ; FDIC-10-384b; Issued 7/28/10 – PDF

Metro United Bank, San Diego, CA; FDIC-10-379b; Issued 7/22/10 – PDF

Oceanic Bank, San Francisco, CA; FDIC-10-362b; Issued 7/15/10 – PDF

The Wilton Bank, Wilton, CT; FDIC-10-375b; Issued 7/22/10 – PDF

Bank of Jackson County, Graceville, FL; FDIC-10-364b; Issued 7/27/10 – PDF

Great Eastern Bank of Florida, Miami, FL; FDIC-10-365b; Issued 7/27/10 – PDF

TIB Bank, Naples, FL; FDIC-10-358b; Issued 7/2/10 – PDF

Pinnacle Bank, Orange City, FL; FDIC-10-184b; Issued 7/7/10 – PDF

First Chatham Bank, Savannah, GA; FDIC-10-177b; Issued 7/13/10 – PDF

AztecAmerica Bank, Berwyn, IL; FDIC-10-441b; Issued 7/30/10 – PDF

Millennium Bank, Des Plaines, IL; FDIC-10-200b; Issued 7/20/10 – PDF

First Choice Bank, Geneva, IL; FDIC-10-311b; Issued 7/29/10 – PDF

Security Bank, S.B., Springfield, IL; FDIC-10-317b; Issued 7/20/10 – PDF

Midwest Community Bank, Plainville, KS; FDIC-08-373b; Issued 7/12/10 – PDF

First Bank and Trust, New Orleans, LA; FDIC-10-329b; Issued 7/9/10 – PDF

HarVest Bank of Maryland, Rockville, MD; FDIC-10-349b; Consent Order; Issued 7/2/10 – PDF

Monroe Bank & Trust, Monroe, MI; FDIC-10-163b; Issued 7/12/10 – PDF

Sherburne State Bank, Becker, MN; FDIC-10-296b; Issued 7/12/10 – PDF

Riverland Bank, Jordan, MN; FDIC-10-208b; Issued 7/1/10 – PDF

Progrowth Bank, Nicollet, MN; Issued 7/1/10 – PDF

1st Commerce Bank, North Las Vegas, NV; FDIC-09-703b; Issued 7/13/10 – PDF

Hanover Community Bank, Garden City Park, NY; FDIC-10-292b; Issued 7/27/10 – PDF

Parkway Bank, Lenoir, NC; FDIC-10-402b; Issued 7/15/10 – PDF

Security Savings Bank, SSB, Southport, NC; FDIC-10-330b; Issued 7/28/10 – PDF

Benchmark Bank, Gahanna, OH; FDIC-10-355b; Issued 7/30/10 – PDF

Sevier County Bank, Sevierville, TN; FDIC-10-150b; Issued 7/27/10 – PDF

Main Street Bank, Kingwood, TX; FDIC-10-321b; Issued 7/28/10 – PDF

Cascade Bank, Everett, WA; FDIC-10-322b; Issued 7/15/10 – PDF

Citizens Bank of Mukwonago, Mukwonago, WI; FDIC-10-357b; Issued 7/30/10 – PDF


  1. allen hardester says

    what about first mariner bank of baltimore, md

  2. Problem Bank List Staff says

    First Mariner had a cease and desist on April 22, 2009

  3. I read nothing in any of the Consent Orders that attributes the decline in the Bank’s financial strength to the worst economic conditions since the last Great Depression. To ignore this 2nd Great Depression and its impact on all financial institutions is both egregious and disingenuous. A strong case could be made that failure to regulate the no doc no income lending and the mortgage backed security programs were the primary ingredient that led to the economic problems this country is facing today. I believe consideration should be given by the FDIC to replace “Unsafe and Unsound Banking Practices” in the Consent Order with “Unsafe and Unsound Regulatory Practices”. The failure of the regulatory agencies to monitor the NDNI lending and the compensation practices of the “too big to fail” institutions are the two primary ingredients that caused this 2nd Great Depression. It is this 2nd Great Depression that is the primarily responsible for the rapid decline in real estate values and the corresponding decline in the Bank’s financial condition. Smaller banks that were denied TARP funding are not being forced to compete with the larger TARP funding institutions that can afford to dump real estate they hold as OREO below fair market value. This forces market value down for all properties. Falure of FDIC and other regulatory practices is and continues to be the driving negative impact on finacial recover today

  4. What about Eastern savings Bank, They are the worst, don’t do business with them!!!!!

  5. Problem Bank List Staff says

    You probably won’t have to worry about doing business with them for very long. They are rated the most troubled bank in the state of Maryland by depositaccounts.com.
    Eastern Savings Bank has a Texas Ratio of 510% and anything over 100% is considered very risky. Eastern has total assets of around $680 million of which almost $300 million is classified as troubled assets.
    Why this bank is still allowed to operate is a good question.

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