A total of 56 administrative enforcement actions were taken by the FDIC against problem banks in September, up from 53 in August.
The most serious September enforcement actions taken by the FDIC included 10 consent orders, 3 prompt corrective actions and 16 civil money penalties. Please see the complete list of enforcement actions taken below.
The FDIC publicly issues enforcement actions when a bank has not properly addressed severe capital or operating deficiencies and/or when regulators have limited confidence in the soundness of an institution. Under Section 38 of the FDIC Improvement Act of 1991, regulators are required to respond to deteriorating capital levels with appropriately severe supervisory actions. A bank that becomes critically undercapitalized is generally closed by regulators within 90 days.
The most serious regulatory orders issued by the FDIC are listed below. Of the three banks issued a prompt corrective action notice in September, one has already failed (see All American Bank Closed By Regulators).
A cease and desist order is imposed in an involuntary manner 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.” Under recent enforcement action nomenclature changes, if the financial institution accepts the FDIC cease and desist order, it is now issued as a “consent order”.
Under a consent order, a bank executes a “Stipulation to the Issuance of a Consent Order” under which a bank has consented to the issuance of the Consent Order “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) directive by the FDIC is a more serious “formal action that requires an institution to take one or more specified actions to return to required minimum capital standards”. Many of the financial institutions that receive a PCA are unable to comply with the directive and are shortly thereafter closed by regulators.
The number of banks on the FDIC’s confidential Problem Bank List has increased from 76 institutions at December 2007 to 865 at June 30, 2011.
Problem banks have weak capital positions due to operational deficiencies and/or large loan losses. It is likely that most of the banks issued enforcement actions are on the Problem Bank List.
Listed below are the public enforcement actions taken by the FDIC for September 2011.
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
(Consent Orders)Americas United Bank, Glendale, CA; FDIC-11-356b; Issued 9/7/11 – PDF
Valley Community Bank, Pleasanton, CA; FDIC-11-528b; Issued 9/23/11 – PDF
The Citizens Bank of Forsyth County, Cumming, GA; FDIC-11-369b; Issued 9/29/11 – PDF
Farmers’ and Traders’ State Bank, Shabbona, IL; FDIC-11-325b; Issued 9/13/11 – PDF
Winfield Community Bank, Winfield, IL; FDIC-11-283b; Issued 9/16/11 – PDF
United Commerce Bank, Bloomington, IN; FDIC-11-390b; Issued 9/12/11 – PDF
Northwest Savings Bank, Warren, PA; FDIC-11-361b; FDIC-11-362k; Issued 8/8/11 – PDF
Community First Bank & Trust, Columbia, TN; FDIC-11-328b; Issued 9/20/11 – PDF
United Central Bank, Garland, TX; FDIC-11-398b; Issued 9/15/11 – PDF
Falcon International Bank, Laredo, TX; FDIC-11-440b; Issued 9/30/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(e), 12 U.S.C. § 1818(e)
(Removal and Prohibition Orders)Colonial Bank, Montgomery, AL; FDIC-10-239e; against Catherine Kissick; Issued 9/19/11 – PDF
Colonial Bank, Montgomery, AL; FDIC-11-299e; against Teresa Kelly; Issued 9/15/11 – PDF
First Southern Bank, Batesville, AR; FDIC-11-335e; against Kevin H. Lewis; Issued 9/15/11 – PDF
Tri Counties Bank, Chico, CA; FDIC-11-309e; against Jeremy Taylor; Issued 9/6/11 – PDF
Farmers State Bank of Hoffman, Hoffman, IL; FDIC-10-848e; against Paul E. Finke; Issued 9/15/11 – PDF
North Salem State Bank, North Salem, IN; FDIC-10-957e; against Darren G. Haler; Issued 9/6/11 – PDF
Hastings State Bank, Hastings, NE; FDIC-11-191e; against Jeffrey L. Olson; Issued 9/6/11 – PDF
Branch Banking and Trust, Winston-Salem, NC; FDIC-11-242e; against Erin G. Wilmer; Issued 9/6/11 – PDF
Quality Bank, Fingal, ND; FDIC-10-956e; against Andrew B. Lehr; Issued 9/6/11 – PDF
Congaree State Bank, West Columbia, SC; FDIC-11-208e; against Franklin Harvin Ray, Jr.; Issued 9/6/11 – PDF
Carroll Bank & Trust, Huntingdon, TN; FDIC-11-265e; against Steven G. Nolen; Issued 9/6/11 – PDF
TNBank, Oak Ridge, TN; FDIC-09-528e; against Braxton L. (“Gus”) Sadler; Issued 9/19/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 5(e), 12 U.S.C. § 1815(e)
(Cross Guarantee Liability)Inland Community Bank, N. A., Rialto, CA; Related to Progress Bank of Florida (In Receivership); Tampa, FL; and Gateway Bank, San Francisco, CA; FDIC-11- 421kk; Issued 9/22/11 – PDF
Bank of Feather River; Yuba City, CA; FDIC-11-236kk; Issued 9/16/11 – PDF
Evansville Commerce Bank, Evansville, IN; FDIC-11-068kk; Issued 9/23/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(i), 12 U.S.C. § 1818(i)
(Civil Money Penalties)Colorado East Bank & Trust, Lamar, CO; FDIC-11-219k; in the amount of $5,000.00; Issued 9/21/11 – PDF
The Bank of Delmarva, Seaford, DE; FDIC-11-359k; in the amount of $2,700.00; Issued 9/22/11 – PDF
Farmers State Bank of Hoffman, Hoffman, IL FDIC-11-310k; against Paul E. Finke in the amount of $35,000.00; Issued 9/15/11 – PDF
Valley Bank, Moline, IL; FDIC-11-130k; in the amount of $45,000.00; Issued 9/30/11 – PDF
Heritage Bank of Schaumburg, Schaumburg, IL; FDIC-11-230k; in the amount of $6,000.00; Issued 9/29/11 – PDF
MarkleBank, Markle, IN; FDIC-11-202k; in the amount of $82,500.00; Issued 9/9/11- PDF
SSB Bank, Stockbridge MI; FDIC-11-161k; in the amount of $1,050.00; Issued 9/16/11 – PDF
Eastwood Bank, Kasson, MN; FDIC-11-420k; in the amount of $3,695.00; Issued 9/27/11 – PDF
First State Community Bank, Farmington, MO; FDIC-11-447k; in the amount of $13,035.00; Issued 9/22/11 – PDF
Bank Star, Pacific, MO; FDIC-11-448k; in the amount of $4,000.00; Issued 9/22/11 – PDF
Hastings State Bank, Hastings. NE; FDIC-11-192k; against Jeffrey L. Olson in the amount of $25,000.00; Issued 9/6/11 – PDF
The Ohio Valley Bank Company, Gallipolis, OH; FDIC-11-388k; in the amount of $9,600.00; Issued 9/12/11 – PDF
The Wilmington Savings Bank, Wilmington, OH; FDIC-11-116k; in the amount of $900.00; Issued 9/2/11 – PDF
Northwest Savings Bank, Warren, PA; FDIC-11-361b; FDIC-11-362k; Consent Order, Order for Restitution, and Order to Pay in the amount of $325,000.00; Issued 8/8/11 – PDF
GreenBank, Greenville, TN; FDIC-10-802b; in the amount of $132,000.00; Issued 9/2/11 – PDF
Farmers & Merchants Bank & Trust, Marinette, WI; FDIC-11-199k; in the amount of $4,540.00; Issued 9/12/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. § 1831o
(Prompt Corrective Actions)ALL American Bank, Des Plaines, IL; FDIC-11-442PCAS; Issued 9/7/11 – PDF
Heartland Bank, Leawood, KS; FDIC-11- 489PCAS; Issued 9/2/11 – PDF
Fidelity Bank, Dearborn, MI; FDIC-11-479PCAS; Issued 9/7/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(p), 12 U.S.C. § 1818(p)
(Termination of Insurance)CrediCard National Bank, Tucson, AZ; FDIC-11-184p; Issued 9/29/11 – PDF
Mizuho Corporate Bank of California, Los Angeles, CA; FDIC-11-510p; Issued 9/28/11 – PDF
Bank of Tokyo-Mitsubishi UFJ Trust Company, New York, NY; FDIC-11-511p; Issued 9/28/11 – PDF
TERMINATIONS
Orders Terminating Consent Orders and Cease and Desist Orders
Parkway Bank, Rogers, AR; FDIC-08-128b; Issued 9/28/11 – PDF
Bank of Alameda, Alameda, CA; FDIC-10-546b; Issued 9/20/11 – PDF
Ojai Community Bank, Ojai, CA; FDIC-11-101b; Issued 9/16/11 – PDF
SouthShore Community Bank, Apollo Beach, FL; FDIC-09-672b; Issued 9/21/11 – PDF
The Merchants & Farmers Bank, Melville, LA FDIC-09-367b; Issued 9/16/11 – PDF
Public Savings Bank, Huntingdon Valley, PA; FDIC-11-107b; Issued 9/26/11 – PDF
First Century Bank, Tazewell, TN; FDIC-10-653b; Issued 9/14/11 – PDF
Bank of the Northwest, Bellevue, WA; FDIC-09-712b; Issued 9/1/11 – PDF
West Pointe Bank, Oshkosh, WI; FDIC-09-512b; Issued 9/12/11 – PDF
Speak Your Mind
You must be logged in to post a comment.