FDIC Issues 72 Enforcement Actions Against Problem Banks In November

The FDIC issued a total of 72 enforcement actions against banks in November 2011, down slightly from 75 in October.

Included in the November enforcement actions were 9 civil money penalties, 1 prompt corrective action and 13 consent orders.  The FDIC also terminated 37 consent orders and prompt corrective action directives due to either the failure of the bank involved or compliance with the original order.  Please see complete list of enforcement actions taken below.

According to the FDIC, a consent order is a formal enforcement action issued issued by regulators to a bank.  The order requires the bank involved to stop unsafe or unsound practices.  If the bank is able to materially comply with the regulatory orders issued, the consent order may be terminated.

A prompt corrective action (PCA) directive is a far more serious enforcement action than a consent order, requiring banks to take immediate action to return to “minimum capital standards”.  Banks issued a PCA are generally considered to be in “an unsafe and unsound condition”.  A bank receiving a PCA directive is considered to be either undercapitalized, significantly undercapitalized or critically undercapitalized.

The number of problem banks declined slightly in the latest quarter to 844 banks at September 30, 2011 from 865 in the previous quarter.  Problem banks account for almost 12% of all FDIC insured banking institutions.

Banks on the FDIC confidential Problem Bank List have operational deficiencies and weak capital positions due to large loan losses.  Most of the banks issued FDIC enforcement actions are probably on the Problem Bank List.

Listed below are the enforcement actions taken by the FDIC for November 2011.

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

Decatur State Bank, Decatur, AR; FDIC-11-561b; Issued 11/18/11 – PDF

Applied Bank, Wilmington, DE; FDIC-11-070b; FDIC-11-081k; in the amount of $100,000.00; Issued 11/18/11 – PDF

Peoples Bank, Lyons, GA; FDIC-11-502b; Issued 11/30/11 – PDF

The Citizens Bank, Nashville, GA; FDIC-11-481b; Issued 11/22/11 – PDF

FirstSecure Bank and Trust Co.; Palos Hills, IL; FDIC-11-288b; Issued 11/17/11 – PDF

Kaw Valley Bank, Topeka, KS; FDIC-11-527b; Issued 11/28/11 – PDF

River City Bank, Inc., Louisville, KY; FDIC-10-714b; FDIC-11-114k; in the amount of $145,000.00; Issued 11/17/11 – PDF

Prairie Mountain Bank, Great Falls, MT; FDIC-11-504b; Issued 11/9/11 – PDF

International Bank, Raton, NM; FDIC-11-439b; Issued 11/3/11 – PDF

The Farmers Bank of Lynchburg, Lynchburg, TN; FDIC-11-285b; Issued 11/18/11 – PDF

Peoples State Bank of Commerce; Nolensville, TN; FDIC-11-212b; Issued 11/4/11 – PDF

Wolf River Community Bank, Hortonville, WI; FDIC-11-399b; Issued 11/23/11 – PDF

Southport Bank, Kenosha, WI; FDIC-11-491b; Issued 11/4/11 – PDF

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

Bank of the West, San Francisco, CA; FDIC-10-340e; against Edna Boger; Issued 11/7/11 – PDF

Essex Saving Bank, Essex, CT; FDIC-11-094e; against Paul G. Holland, Jr.; Issued 11/2/11 – PDF

Integrity Bank, Alpharetta, GA; FDIC-10-356e against Joseph Todd Foster; Issued 11/4/11 – PDF

Archer Bank, Chicago, IL; FDIC-11-119e; against Maria E. Juarez, aka Maria E. Ramirez; Issued 11/21/11 – PDF

Petefish, Skiles & Co., Virginia, IL; FDIC-10-301e; against Stephen R. Bradley; Issued 11/2/11 – PDF

Butler Bank, Lowell, MA; FDIC-11-427e; against John H. Pearson, Jr.; Issued 11/2/11 – PDF

Century Bank and Trust, Coldwater, MI; FDIC-10-891e; against Kevin G. Boguth; Issued 11/7/11 – PDF

Silver State Bank, Henderson, NV; FDIC-10-894e; FDIC-10-895k; in the amount of $35,000.00 against Douglas E. French; Issued 11/4/11 – PDF

NewDominio Bank, Charlotte, NC; FDIC-11-377e; FDIC-11-378k; in the amount of $3,000.00 against Robert G. Fox, Jr.; Issued 11/2/11 – PDF

GreenBank, Greeneville, TN; FDIC-10-794e; against Amy Bryant; Issued 11/21/11 – PDF

International Bank of Commerce, Laredo, TX; FDIC-08-386e; against Carlo Daniel Villarreal; Issued 11/2/11 – PDF

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

Essex Saving Bank, Essex, CT; FDIC-11-095k; against Paul G. Holland, Jr. in the amount of $10,000.00; Issued 11/2/11 – PDF

Applied Bank, Wilmington, DE; FDIC-11-070b; FDIC-11-081k; Consent Order, Order for Restitution, and Order to Pay in the amount of $100,000.00; Issued 11/18/11 – PDF

Ohana Pacific Bank, Honolulu, HI; FDIC-11-568k; in the amount of $2,695.00; Issued 11/4/11 – PDF

The Kansas State Bank, Ottawa, KS; FDIC-11-556k; in the amount of $5,000.00; Issued 11/18/11 – PDF

River City Bank, Inc., Louisville, KY; FDIC-10-714b; FDIC-11-114k: Consent Order; Order for Restitution; and Order to Pay Civil Money Penalties in the amount of $145,000.00; Issued 11/17/11 – PDF

Butler Bank, Lowell, MA; FDIC-11-426k; against John H. Pearson, Jr. in the amount of $225,000.00; Issued 11/2/11 – PDF

United Bank of Michigan, Grand Rapids, MI; FDIC-11-043k; in the amount of $8,000.00; Issued 11/4/11 – PDF

GreenBank, Greeneville, TN; FDIC-10-795k; against Amy Bryant in the amount of $75,000.00; Issued 11/21/11 – PDF

North Dallas Bank & Trust Co., Dallas, TX; FDIC-11-346k; in the amount of $8,500.00; Issued 11/30/11 – PDF

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

First Capital Bank, Kingfisher, OK; FDIC-11-539PCAS; Issued 11/14/11 – PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(q), 12 U.S.C. § 1818(q)
(Voluntary Termination of Insurance)

Main Street Bank, Kingwood, TX; FDIC-11-628q; Issued 11/22/11 – PDF

TERMINATIONS

Orders Terminating Consent Orders and Cease and Desist Orders

Commerce Bank of Temecula Valley, Murrieta, CA; FDIC-10-104b; Issued 11/18/11 – PDF

Savings Bank of Mendocino County, Ukiah, CA; FDIC-10-887b; Issued 11/21/11 – PDF

Decatur First Bank, Decatur, GA; FDIC-09-377b; Issued 11/7/11 – PDF

Community Capital Bank, Jonesboro, GA; FDIC-09-019b; Issued 11/3/11 – PDF

All American Bank, Des Plaines, IL; FDIC-09-551b; Issued 11/10/11 – PDF

All American Bank, Des Plaines, IL; FDIC-11-020b; Issued 11/10/11 – PDF

Family Bank and Trust Co., Palos Hills, IL; FDIC-08-009b; Issued 11/17/11 – PDF

Evansville Commerce Bank, Evansville, IN; FDIC-09-692b; Issued 11/10/11 – PDF

Polk County Bank, Johnston, IA; FDIC-08-210b; Issued 11/29/11 – PDF

The Tampa State Bank, Tampa, KS; FDIC-10-743b; Issued 11/1/11 – PDF

United Kentucky Bank of Pendleton County, Inc., Falmouth, KY; FDIC-11-104b; Issued 11/22/11 – PDF

United Bank and Trust Company, New Orleans, LA; FDIC-06-175b; Issued 11/3/11 – PDF

Lake Region Bank, New London, MN; FDIC-10-532b; Issued 11/14/11 – PDF

The Riverbank, Wyoming, MN; FDIC-08-389b; Issued 11/9/11 – PDF

First Home Savings Bank, Mountain Grove, MO; FDIC-11-596b; Issued 10/25/11 – PDF

First State Bank, Cranford, NJ; FDIC-08-166b; Issued 11/22/11 – PDF

Mutual Community Savings Bank, SSB, Durham, NC; FDIC-07-072b; Issued 11/10/11 – PDF

Bramble Savings Bank, Milford, OH; FDIC-07-127b; Issued 11/28/11 – PDF

First State Bank of Altus, Altus, OK; FDIC-08-287b; Issued 11/18/11 – PDF

Washington Financial Bank, Washington, PA; FDIC-10-506b; Issued 11/22/11 – PDF

Equity Bank, SSB, Dallas, TX; FDIC-09-524b; Issued 11/16/11 – PDF

Access 1st Capital Bank, Denton, TX; FDIC-10-697b; Issued 11/22/11 – PDF

The Bank of Texas, Devine, TX; FDIC-10-341b; Issued 11/8/11 – PDF

Fort Davis State Bank, Fort Davis, TX; FDIC-08-219b; Issued 11/30/11 – PDF

ShoreBank, Pacific, Ilwaco, WA; FDIC-09-513b; Issued 11/28/11 – PDF

State Bank of Gilman, Gilman, WI; FDIC-06-114b; Issued 11/10/11 – PDF

Southpost Bank, Kenosha, WI; FDIC-09-435b; Issued 11/4/11 – PDF

Tomahawk Community Bank, SSB, Tomahawk, WI; FDIC-09-204b; Issued 11/21/11 – PDF

Orders Terminating Supervisory Prompt Corrective Action

Legacy Bank, Scottsdale, AZ; FDIC-10-354PCAS; Issued 11/4/11 – PDF

First Priority Bank, Bradenton, FL; FDIC-08-127PCAP; Issued 11/3/11 – PDF

Bank of Florida – Southwest, Naples, FL; FDIC-10-160PCAS; Issued 11/3/11 – PDF

First Peoples Bank, Port St. Lucie, FL; FDIC-11-004PCAS; Issued 11/3/11 – PDF

All American Bank, Des Plaines, IL; FDIC-11-442PCAS; Issued 11/10/11 – PDF

Palos Bank and Trust Company, Palos Heights, IL; FDIC-10-459PCAS; Issued 11/4/11 – PDF

Valley Community Bank, St. Charles, IL; FDIC-10-637PCAS; Issued 11/4/11 – PDF

Peoples State Bank, Hamtramck, MI; FDIC-10-598PCAS; Issued 11/4/11 – PDF

Systematic Savings Bank, Springfield, MO; FDIC-11-595b; FDIC-11-595b; Issued 11/2/11 – PDF

ADMINISTRATIVE HEARING SCHEDULED FOR JANUARY 2012

Marine Bank & Trust Company, Vero Beach, FL; FDIC-10-825b; Section 8(b) Proceeding