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Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.

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Bank Regulators Maintain Actions

Recent regulatory actions against financial institutions

March 4, 2011

By PAULA PARISOT MortgageDaily.com


photo of Paula Parisot
Paula Parisot
Monthly regulatory actions against financial institutions or their employees held steady around a hundred once again. Cease-and-desist numbers were down slightly, while orders to terminate prior actions started to inch up.

The Federal Deposit Insurance Corp. processed 61 matters during January, a decline from 76 matters reported a month earlier. A slight decrease was also noted when compared to 67 matters reported in January 2010.

The FDIC issued 24 cease-and-desist orders during January and was joined by the Office of the Comptroller of the Currency in issuing a total of 27 cease-and-desist orders or consent orders. Such orders numbered 27 also in the last regulatory report.

Failed financial institutions often faced cease-and-desist or consent orders prior to being seized by regulators. The FDIC issues such orders pursuant to Section 8(b), 12 U.S.C. §1818(b).

Cease-and-Desist or Consent Orders
Company Location Regulator Order/Docket No. Date
All American Bank Des Plaines, IL FDIC FDIC-11-020b January 14, 2011
Archer Bank Chicago, IL FDIC FDIC-10-657b January 13, 2011
Boundary Waters Bank Ely, MN FDIC FDIC-10-836b January 27, 2011
Chicago Community Bank Chicago, IL FDIC FDIC-10-675b January 13, 2011
Citizens Community Bank of Illinois Berwyn, IL FDIC FDIC-10-676b January 13, 2011
Community Bank of DuPage Downers Grove, IL FDIC FDIC-10-677b January 13, 2011
Edens Bank Wilmette, IL FDIC FDIC-10-678b January 13, 2011
First Bank and Trust Company of Illinois Palatine, IL FDIC FDIC-10-875b January 5, 2011
First Federal Savings Bank of Elizabethtown Elizabethtown, KY FDIC FDIC-10-817b January 24, 2011
First Southern National Bank Statesboro, GA OCC 2010-254 November 30, 2010
Georgia Primary Bank Atlanta, GA FDIC FDIC-10-824b January 28, 2011
Heritage Bank & Trust Columbia, TN FDIC FDIC-10-484b January 28, 2011
Holmes County Bank & Trust Co. Lexington, MS FDIC FDIC-10-963b January 20, 2011
Legacy Bank of Florida Boca Raton, FL FDIC FDIC-10-654b January 4, 2011
Metropolitan Bank and Trust Company Chicago, IL FDIC FDIC-10-680b January 13, 2011
North Community Bank Chicago, IL FDIC FDIC-10-681b January 13, 2011
Pacific National Bank Miami, FL OCC 2010-253 December 15, 2010
Plaza Bank Norridge, IL FDIC FDIC-10-682b January 13, 2011
Premier Community Bank of the Emerald Coast Crestview, FL FDIC FDIC-10-648b January 28, 2011
PrimeSouth Bank Blackshear, GA FDIC FDIC-10-842b January 31, 2011
Saehan Bank Los Angeles, CA FDIC FDIC-10-849b January 25, 2011
Signature Bank Bad Axe, MI FDIC FDIC-10-913b January 27, 2011
Sunwest Bank Tustin, CA FDIC FDIC-10-663b January 21, 2011
The First Commercial Bank Chicago, IL FDIC FDIC-10-679b January 13, 2011
The First National Bank of Chatsworth Chatsworth, GA OCC 2011-001 January 20, 2011
United Bank Osseo, WI FDIC FDIC-10-787b January 10, 2011
West Pointe Bank Oshkosh, WI FDIC FDIC-10-764b January 13, 2011


The FDIC terminated cease-and-desist orders against eight institutions during January.

Order Terminating a Cease-and-Desist Order
Company Location Regulator Order/Docket No. Date
American Continental Bank City of Industry, FL FDIC FDIC-09-658b January 7, 2011
Chestatee State Bank Dawsonville, GA FDIC FDIC-08-142b January 28, 2011
Copper Star Bank Scottsdale, AZ FDIC FDIC-09-657b January 27, 2011
K Bank Randallstown, MD FDIC FDIC-09-029b January 14, 2011
Lafayette Community Bank Lafayette, IN FDIC FDIC-06-238b January 27, 2011
Pacific Valley Bank Salinas, CA FDIC FDIC-09-556b January 12, 2011
Saehan Bank Los Angeles, CA FDIC FDIC-09-557b January 25, 2011
USA Bank Port Chester, NY FDIC FDIC-07-206b January 14, 2011


The OCC, the Federal Reserve and multiple state banking regulators recently entered formal agreements with 19 institutions. Such agreements often require the conservation of capital, operational improvements and, occasionally, management changes.

Formal Agreements
Company Location Regulator Order/Docket No. Date
American Bancorporation of Minnesota, Inc. Brainerd, MN Federal Reserve Bank of Minneapolis 11-002-WA/RB-HC February 16, 2011
BANKVEST, INC. Castle Rock, CO Federal Reserve Bank of Kansas City 10-236-WA/RB-HC February 2, 2011
Bridgeview Bancorp Inc. Bridgeview, Ill. Federal Reserve Bank of Chicago 11-017-WA /RB-HC February 18, 2011
Centerbank of Jacksonville, National Association Jacksonville, FL OCC 2010-260 December 14, 2010
Eastern Virginia Bankshares, Inc. and EVB Tappahannock, VA Federal Reserve Bank of Richmond, State Corporation Commission Bureau of Financial Institutions 10-244-WA/RB-HC, 10-244-WA/RB-SM February 17, 2011
Financial Services of St. Croix Falls, Inc. St. Croix Falls, WI Federal Reserve Bank of Minneapolis 10-101 -WA/RB-HC February 7, 2011
First National Bank Camdenton, Mo OCC 2010-263 December 10, 2010
First National Bank of Winnsboro Winnsboro, TX OCC 2010-264 December 14, 2010
Liberty Bank Twinsburg, OH OCC 2011-007 January 25, 2011
Market Bancorporation, Inc. Elk New Market, MN Federal Reserve Board 11-010-WA/RB-HC February 10, 2011
Marquette Financial Companies Minneapolis, MN Federal Reserve Bank of Minneapolis 10-253-WA/RB-HC February 17, 2011
National Bancorp, Inc. Schaumburg, IL FEDERAL RESERVE BANK OF CHICAGO 11-013-WA/RB-HC February 17, 2011
Noble Bank & Trust, National Association Anniston, AL OCC 2010-259 November 10, 2010
One Bank & Trust, National Association Little Rock, AR OCC 2011-005 January 20, 2011
Outsource Holdings Inc. Lubbock, Texas Federal Reserve Bank of Dallas 11-021-WA/RB-HC February 24, 2011
Queensborough National Bank & Trust Company Louisville, GA OCC 2010-261 December 8, 2011
The First National Bank of Milaca Milaca, MN OCC 2010-262 November 2, 2010
The First National Bank of Sedan Sedan, KS OCC 2011-006 January 13, 2011
Westside Banking Company University Place, WA FEDERAL RESERVE BANK OF SAN FRANCISCO 11-014-WA/RB-HC February 14, 2011


The FDIC and OCC banned six individuals from financial institutions through removal-and-prohibition orders issued pursuant to Section 8(e), 12 U.S.C. § 1818(e).

Removal / Prohibition Orders
Employer Location Individual Regulator Amount Order # Date
Arthur State Bank Union, SC Kimberly O. McAbee FDIC na FDIC-10-486e January 7, 2011
Bank of Castile Castile, NY Tracy L Smith FDIC na FDIC-10-733e January 7, 2011
Firstbank-West Michigan Ionia, MI Michael J. Willett FDIC na FDIC-09-740e January 31, 2011
The Community National Bank "Franklin, OH Jay Lees OCC na 2011-003 February 2, 2011
Timberland Bank El Dorado, AR Mark K. Turner FDIC na FDIC-10-590e January 7, 2011
Wachovia Bank, National Association Charlotte, NC John Arango OCC na 2011-008 January 5, 2011


Civil Money Penalties were issued against 31 companies by the OCC and the FDIC -- which noted that such orders are issued pursuant to Section 8(i), 12 U.S.C. § 1818(i).

Final Orders - Civil Money Penalties
Company Location Individual Regulator Amount Order/Docket No. Date
AztecAmerica Bank Berwyn, IL na FDIC $4,500 FDIC-10-130k January 21, 2011
BancorpSouth Bank Tupelo, MS na FDIC $46,500 FDIC-10-779k January 31, 2011
Berkshire Bank Wyomissing, PA na FDIC $7,000 FDIC-10-879k January 3, 2011
Brimfield Bank Brimfield, IL na FDIC $5,500 FDIC-10-954k January 25, 2011
Brimfield Bank Brimfield, IL na FDIC $1,050 FDIC-10-955k January 25, 2011
Central Bank & Trust Co. Lexington, KY na FDIC $3,150 FDIC-10-656k January 6, 2011
Collins State Bank Collins, WI na FDIC $1,200 FDIC-10-618k January 14, 2011
Dacotah Bank Aberdeen, SD na Federal Reserve Board $10,995 011-003-CMP-SM February 4, 2011
First Bank of Highland Park Highland Park, IL na FDIC $1,150 FDIC-10-643k January 27, 2011
First Bank of Highland Park Highland Park, IL na FDIC $1,150 FDIC-10-645k January 27, 2011
First Madison Valley Bank Ennis, MT na FDIC $6,400 FDIC-10-933k January 14, 2011
Franklin Savings Bank Farmington, MA na Federal Reserve Board $5,160 011-004-CMP-SM February 4, 2011
Great Southern Bank Reeds Springs, MO na FDIC $21,953 FDIC-10-634k January 4, 2011
Heritage Bank of Central Illinois Trivoli, IL na FDIC $2,695 FDIC-10-620k January 21, 2011
Mizrahi Tefahot Bank, Ltd. Los Angeles, CA na FDIC $350,000 FDIC-10-549k January 31, 2011
Murphy Bank Fresno, CA na FDIC $11,000 FDIC-10-919k January 11, 2011
MyAnns Corporation Piqua, KS na Federal Reserve Board $37,500 11-018-BHC-CMP February 8, 2011
Northwest Savings Bank Warren, PA na FDIC $10,000 FDIC-10-918k January 3, 2011
Security Bank New Auburn, WI na FDIC $7,000 FDIC-10-619k January 21, 2011
Security Bank National Association North Lauderdale, FL Robert Diez OCC na 2010-255 November 23, 2010
Security Bank National Association North Lauderdale, FL Manuel Fernandez OCC na 2010-256 November 23, 2010
Security Bank National Association North Lauderdale, FL Floyd Harper OCC na 2010-257 November 23, 2010
Security Bank National Association North Lauderdale, FL Timothy Kenney OCC na 2010-258 November 23, 2010
Security Bank National Association North Lauderdale, FL Larry Serlo OCC na 2011-002 January 12, 2011
The Bank National Association "McAlester, OK na OCC na 2011-004 January 28, 2011
The Community National Bank Franklin, OH Jay Lees OCC na 2011-003 February 2, 2011
Tradition Capital Bank Edina, MN na FDIC $3,000 FDIC-10-782k January 4, 2011
Treaty Oak Bank Austin, TX na FDIC $2,300 FDIC-10-863k January 11, 2011
United Bank Osseo, WI na FDIC $10,500 FDIC-10-786k January 10, 2011
Zions First National Bank Salt Lake City, UT na OCC na 2011-009 February 10, 2011
Zions First National Bank Salt Lake City, UT na OCC $8,000,000 2011-009, AA-EC-11-04 February 10, 2011


Prompt Corrective Actions were issued against five companies by the FDIC and the Federal Reserve Board. FDIC prompt corrective actions are issued pursuant to Section 38, 12 U.S.C. § 1831o.

Final Orders - Prompt Corrective Actions
Company Location Regulator Order/Docket No. Date
Bank of Whitman Colfax, WA Federal Reserve Board 11-016-PCA-SM February 9, 2011
Community Banks of Colorado Greenwood Village, CO Federal Reserve Board 11-011-PCA-SM February 8, 2011
First Peoples Bank Port St. Lucie, FL FDIC FDIC-11-004PCAS January 28, 2011
Idaho Banking Company Boise, ID Federal Reserve Board 11-013-PCA-SM February 9, 2011
Seattle Bank Seattle, WA FDIC FDIC-11-006PCAS January 10, 2011


An order terminating supervisory prompt corrective action directive was issued for three financial institutions by the FDIC.

Orders Terminating Supervisory Prompt Corrective Action Directive
Company Location Regulator Order/Docket No. Date
Idaho First Bank McCall, ID FDIC FDIC-10-557PCAS January 3, 2011
LibertyPointe Bank New York, NY FDIC FDIC-09-554PCAS January 14, 2011
USA Bank Port Chester, NY FDIC FDIC-09-708PCAS January 14, 2011


Five actions were terminated by the OCC.

Terminations of Existing Enforcement Actions
Company Location Regulator Order/Docket No. Date
C&D, Pacific National Bank Miami, FL OCC EA# 2005-165 December 15, 2010
C&D, Pacific National Bank Miami, FL OCC EA# 2009-137 December 15, 2010
FA, Eaton National Bank and Trust Co. Eaton, OH OCC EA# 2009-128 Dec. 14, 2010
FA, First Southern National Bank Statesboro, GA OCC EA# 2009-088 November 30, 2010
FA, The First National Bank of Chatsworth Chatsworth, GA OCC EA# 2009-153 January 20, 2011


The FDIC scheduled a March 21, 2011 administrative hearing for Synergy Bank, S.S.B. in McKinney, Texas.


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Paula Parisot has been covering the mortgage industry as a reporter for MortgageDaily.com since 2004.

e-mail Paula at: [email protected]


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