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
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First Bank of Coastal Georgia, Pembroke, GA; FDIC-11-108k; in the amount of $6,500.00; Issued 4/8/11 – PDFHomeStar 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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