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

Recent regulatory orders against financial institutions

Aug. 9, 2010

By staff

Monthly matters processed by the Federal Deposit Insurance Corp. increased 29 percent. Civil money penalties and cease-and-desist orders dominated the latest FDIC activity, while formal agreements kept the Federal Reserve busy.

FDIC actions jumped to 80 in June from 62 during May. The FDIC previously reported that 66 matters were processed during June 2009.

Final orders issued pursuant to Section 8(b), 12 U.S.C. §1818(b ) -- also known as cease-and-desist orders -- represented 29 of the FDIC's actions during June.

Cease-and-Desist Orders
Company Location Regulator Order/Docket No. Date
All American Bank Des Plaines, Ill. FDIC FDIC-10-158b June 21
AztecAmerica Bank Berwyn, Ill. FDIC FDIC-10-129b June 16
Bank of Bozeman Bozeman, Mont. FDIC FDIC-10-386b June 15
Bank of North Las Vegas Las Vegas FDIC FDIC-10-348b June 15
Beartooth Bank Billings, Mont. FDIC FDIC-10-351b June 10
Community Bank and Trust - Alabama Union Springs, Ala. FDIC FDIC-09-722b June 9
Community Bank of Pickens County Jasper, Ga. FDIC FDIC-09-565b June 11
Community First Bank Rosholt, Wis. FDIC FDIC-10-272b June 4
Community State Bank Brook, Ind. FDIC FDIC-10-353b June 11
Farmers & Merchants Bank & Trust Burlington, Iowa FDIC FDIC-10-251b June 10
First Community Bank of Southwest FL Fort Myers, Fla. FDIC FDIC-10-180b June 15
Firstbank of Puerto Rico Santurce, P.R. FDIC FDIC-10-068b June 2
Foundations Bank Pewaukee, Wis. FDIC FDIC-10-114b June 1
Great Northern Bank Saint Michael, Minn. FDIC FDIC-10-213b June 18
GulfSouth Private Bank Destin, Fla. FDIC FDIC-10-026b June 23
Heritage Banking Group Carthage, Miss. FDIC FDIC-10-182b June 4
Jefferson Bank and Trust Co. Eureka, Mo. FDIC FDIC-10-250b June 16
Lone Star Bank Houston FDIC FDIC-10-259b June 10
Oxford Bank & Trust Oak Brook, Ill. FDIC FDIC-09-608b June 22
Prosperity Bank Saint Augustine, Fla. FDIC FDIC-10-045b June 28
Putnam State Bank Palatka, Fla. FDIC FDIC-09-542b June 21
State Bank of Cokato Cokato, Minn. FDIC FDIC-10-212b June 1
State Bank of Paw Paw Paw Paw, Ill. FDIC FDIC-10-294b June 24
Summit Bank Burlington, Wash. FDIC FDIC-10-178b June 2
The Bank of Texas Devine, Texas FDIC FDIC-10-341b June 4
The Palmetto Bank Laurens, S.C. FDIC FDIC-10-077b June 10
The State Exchange Bank Lamont, Okla. FDIC FDIC-10-324b June 22
VisionBank Saint Louis Park, Minn. FDIC FDIC-10-186b June 1
West Pointe Bank Oshkosh, Wis. FDIC FDIC-09-512b June 17

But some of the FDIC's actions included the following orders to terminate cease-and-desist orders.

Orders Terminating Cease-and-Desist Orders

Company Location Regulator Order/Docket No. Date
Access Bank Champlin, Minn. FDIC FDIC-09-440b June 18
American Trust & Savings Bank Whiting, Ind. FDIC FDIC-09-511b June 15
Bank of Florida - Southeast Ft. Lauderdale, Fla. FDIC FDIC-09-587b June 23
Bank of Florida - Southwest Naples, Fla. FDIC FDIC-09-586b June 23
Bank of Florida - Tampa Bay Tampa, Fla. FDIC FDIC-09-588b June 23
Citizens State Bank Woodville, Texas FDIC FDIC-08-379b June 30
Libertad Bank, SSB Austin, Texas FDIC FDIC-08-119b June 30
Peoples Bank of Kentucky Inc. Flemingsburg, Ky. FDIC FDIC-09-020b June 2
Pinehurst Bank St. Paul, Minn. FDIC FDIC-10-020b June 18
Plaza Bank Irvine, Calif. FDIC FDIC-09-175b June 2
The Bank of Bonifay Bonifay, Fla. FDIC FDIC-08-325b June 24

The Federal Reserve Board has disclosed 18 formal agreements over the past two weeks, while the National Credit Union Administration disclosed one. Agreements often require the preservation of capital and improved operational controls. Some agreements call for the replacement of management.

Formal Agreements
Company Location Regulator Order/Docket No. Date
BOV Holding Co., Bank of Versailles Versailles, Mo. Federal Reserve Bank of Kansas City 10-145-WA/RB-HC, 10-145-WA/RB-SM July 26
Citizens Effingham Bancshares Inc. Springfield, Ga. Federal Reserve Bank of Atlanta, Banking Commissioner of the State of Georgia 10-156-WA/RB-HC July 26
Citizens Republic Bancorp Inc., Citizens Bank Flint, Mich. Federal Reserve Bank of Chicago, Michigan Office of Financial and Insurance Regulation 10-159-WA/RB-HC, 10-159-WA/RB-SM July 28
Community Capital Corp., CapitalBank Greenwood, S.C. Federal Reserve Bank of Richmond, State of South Carolina Board of Financial Institutions 10-075 -WA/RB-HC, 10-075 -WA/RB-SM July 28
Community Valley Bancorp Chico, Calif. Federal Reserve Bank of San Francisco 10-146-WA/RB-HC July 23
Farmers State Bank Faith, S.D. Federal Reserve Bank of Minneapolis; State of South Dakota Department of Revenue and Regulation, Division of Banking 10-064-WA/RB-SMb July 23
Harbor Bankshares Corp. Baltimore, Md. Federal Reserve Bank of Richmond 10-138-WA/RB-HCb July 22
Macatawa Bank Corp. Holland, Mich. Federal Reserve Bank of Chicago 10-117-WA/RB-HC July 23
Metro North Bancshares Inc. Elk River, Minn. Federal Reserve Bank of Minneapolis 10-130-WA/RB-HC July 23
New Peoples Bankshares Inc., New Peoples Bank Inc. Honaker, Va. Federal Reserve Bank of Richmond, Virginia State Corporation Commission, Bureau of Financial Institutions 10-148-WA/RB-BHC, 10-148-WA/RB-SM July 29
North State Bancshares Inc. Shakopee, Minn. Federal Reserve Bank of Minneapolis 10-154-WA/RB-HC July 26
NOVA Financial Holdings Inc. Berwyn, Pa. Federal Reserve Bank of Philadelphia 10-140-WA/RB-HC July 19
Oregon Pacific Bancorp, Oregon Pacific Bank Florence, Ore. Federal Reserve Bank of San Francisco, Oregon Department of Consumer and Business Services Division of Finance and Corporate Securities 10-127-WA/RB-HC, 10-127-WA/RB-SM July 23
Premier Financial Bancorp Inc., Abigail Adams National Bancorp Inc., Consolidated Bank and Trust Co. Huntington, W.V.; Washington, D.C.; Richmond, Va. Federal Reserve Bank of Richmond, Virginia State Corporation Commission Bureau of Financial Institutions 10-141-WA/RB-SM July 29
Premier Financial Corp., Premier Bank Dubuque, Iowa Federal Reserve Bank of Chicago, State of Iowa Division of Banking 10-113-WA/RB-HC, 10-113-WA/RB-SM July 28
Progress Bank of Florida Tampa, Fla. Federal Reserve Bank of Atlanta, and the State of Florida Office of Financial Regulation 10-162-WA/RB-SM July 27
The Prosperity Banking Co. St. Augustine, Fla. Federal Reserve Bank of Atlanta 10-001-WA/RB-HC July 26
Sonoma Valley Bancorp Sonoma, Calif. Federal Reserve Bank of San Francisco 10-173 -WA/RB-HC Aug. 4
Veritas Federal Credit Union Franklin, Tenn. NCUA na Aug. 4

The FDIC banned several individuals from the banking industry with removal-prohibition orders.

Removal / Prohibition Orders
Employer Individual Location Regulator Order # Date
Bank of Minden Linda C. Higgins Mindenmines, Mo. FDIC FDIC-10-120e June 21
Bank of the Ozarks Bradley D. Payne Little Rock, Ark. FDIC FDIC-09-244e June 15
Bank of the West Donice Medina San Francisco FDIC FDIC-10-075e June 15
Branch Banking and Trust Co. Laura A. Potts Winston-Salem, N.C. FDIC FDIC-10-031e June 15
Jefferson Bank of Missouri Kelley L. Steiner Jefferson City, Mo. FDIC FDIC-10-073e June 21
Lowell Co-operative Bank Robert A. Houde Lowell, Mass. FDIC FDIC-09-637e; June 21
Metairie Bank & Trust Co. Maria E. May Metairie, La. FDIC FDIC-08-261e June 3
Signature Bank Kenneth E. Yaroch Bad Axe, Mich. FDIC FDIC-06-219e June 3
Stonebridge Bank Dianne L. Caldwell Exton, Pa. FDIC FDIC-10-199e June 21

The Fed and the FDIC hit the following companies with civil money penalties.

Final Orders - Civil Money Penalties
Company Location Regulator Order/Docket No. Amount Date
Allegiance Bank of North America Bala Cynwyd, Pa. FDIC FDIC-10-268k $5,975 June 22
Bank of Agriculture and Commerce Stockton, Calif. FDIC FDIC-10-374k $1,500 June 16
Bank of St. Elizabeth Saint Elizabeth, Mo. FDIC FDIC-10-288k $4,000 June 28
Bank of the Ozarks against Bradley D. Payne Little Rock, Ark. FDIC FDIC-09-245k $50,000 June 15
Cecil Bank Elkton, Md. Federal Reserve Board 10-102-CMP-SM $21,945 July 31
Central Valley Community Bank Fresno, Calif. FDIC FDIC-10-360k $1,540 June 22
Citizens First Bank Viroqua, Wis. FDIC FDIC-09-635k $3,185 June 15
Coastal Community Bank Panama City Beach, Fla. FDIC FDIC-10-295k $48,455 June 4
Community Bank Winslow, Ill. FDIC FDIC-10-117k $3,080 June 16
Country Bank Prescott, Ariz. FDIC FDIC-10-393k $13,090 Kime 28
Crescent Bank Myrtle Beach, S.C. FDIC FDIC-10-241k $5,500 June 4
Lowell Co-operative Bank against Robert A. Houde Lowell, Mass. FDIC FDIC-09-652k $5,000 June 21
MainSource Bank Greensburg, Ind. FDIC FDIC-09-584k $22,000 June 16
MainSource Bank Greensburg, Ind. FDIC FDIC-10-401k $4,235 June 16
MainSource Bank, Successor in Interest to MainSource Bank of Illinois Greensburg, Ind. FDIC FDIC-09-585k $13,500 June 16
New Century Bank Dunn, N.C. FDIC FDIC-10-246k $4,000 June 4
Rainier Pacific Bank (In Receivership), against Victor J. Toy Tacoma, Wash. FDIC FDIC-10-168k $20,000 June 16
The Dime Bank Honesdale, Pa. FDIC FDIC-10-315k $7,620 June 22
The New Washington State Bank New Washington, Ind. FDIC FDIC-10-234k $1,400 June 14
The Port Austin State Bank Port Austin, Mich. FDIC FDIC-09-533k $2,550 June 15
United Southern Bank Hopkinsville, Ky. FDIC FDIC-10-046k $3,850 June 18

The following prompt corrective actions were issued by the Fed and the FDIC.

Final Orders - Prompt Corrective Actions
Company Location Regulator Order/Docket No. Date
Coastal Community Bank Panama City Beach, Fla. FDIC FDIC-10-467PCAS June 24
Community First Bank-Chicago Chicago Federal Reserve Board 10-157-PCA-SM Aug. 3
The Cowlitz Bank Longview, Wash. FDIC FDIC-10-430PCAS June 15
North County Bank Arlington, Wash. FDIC FDIC-10-431PCAS June 24
Pacific State Bank Stockton, Calif. Federal Reserve Board 10-129-PCA-SM July 20

An order (FDIC-09-491PCAS) terminating a supervisory prompt corrective action directive was processed on June 3 by the FDIC for Washita State Bank in Burns, Flat, Okla.

Final orders issued pursuant to Section 5(e), 12 U.S.C. § 1815(e), or cross-guaranty liability, were entered against the following three institutions by the FDIC.

Final Orders - Cross Guarantee Liability
Company Location Regulator Order/Docket No. Date
Community Bank of Lincoln Lincoln, Neb. FDIC FDIC-10-285kk June 7
Community Bank of Rowan Salisbury, N.C. FDIC FDIC-10-069kk June 28
Ohio Commerce Bank Beachwood, Ohio FDIC FDIC-10-372kk June 28

The FDIC granted final orders pursuant to Section 19, 12 U.S.C. § 1829, for the following four individuals. The orders grant permission to file an application and approves the application for consent to participate in the affairs of any insured depository institution.

Final Orders - Section 19
Company Regulator Order/Docket No. Date
Anderson, Lisa Margaret FDIC FDIC-10-217L June 15
Johnson, Donavan Ivanhoe FDIC FDIC-10-289L June 15
Kincaid, Michelle L. FDIC FDIC-09-592L June 2
Stewart, Robert Eugene II FDIC FDIC-08-189L June 2

An administrative hearing was scheduled today in San Diego for Balboa Thrift and Loan Association in Chula Vista, Calif. (FDIC-09-531b).

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