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

Recent regulatory actions against federally insured banks

Nov. 30, 2009

By staff

Regulatory actions taken by the Federal Deposit Insurance Corporation nearly doubled on a monthly basis and more than doubled compared to last year. In all, federal bank regulators recently issued nearly 100 orders -- including more than 40 cease-and-desist orders.

The FDIC reported that it processed 86 matters in October. Actions against federally insured banks and thrifts soared from 48 reported for September. During October 2008, the FDIC processed just 40 actions.

Office of the Comptroller of the Currency issued a personal cease-and-desist order (No. 2009-171) on Sept. 28 against Charles J. Runde of First National Bank of Platteville in Platteville, Wis.

Bank failures are often preceded by cease-and-desist orders. The following institutions recently faced cease-and-desist orders.
Cease-and-Desist Orders
Company Location Regulator Order/Docket No. Date
Access Bank Champlin, Minn. FDIC FDIC-09-440b Oct. 22
Advantage Bank Loveland, Colo. FDIC FDIC-09-427b Oct. 21
American Heartland Bank and Trust Sugar Grove, Ill FDIC FDIC-09-345b Oct. 30
American Metro Bank Chicago FDIC FDIC-09-394b Oct. 30
American National Bank Parma, Ohio OCC 2009-167 Sep. 22
American Trust Bank Roswell, Ga. FDIC FDIC-09-301b Oct. 9
Bank of Greensburg Greensburg, La. FDIC FDIC-09-403b Oct. 20
Bank of South Texas McAllen, Texas FDIC FDIC-09-455b Oct. 27
Bank USA, N.A. Phoenix OCC 2009-166 Sep. 18
Benchmark Bank Aurora, Ill. FDIC FDIC-09-404b Oct. 15
Capmark Bank Midvale, Utah FDIC FDIC-09-213b Oct. 2
Citizens Bank & Trust Co. Covington, La. FDIC FDIC-09-503b Oct. 27
Citizens State Bank New Baltimore, Mich. FDIC FDIC-09-391b Oct. 15
Coatesville Savings Bank Coatesville, Pa. FDIC FDIC-09-447b Oct. 8
Eastside Commercial Bank Conyers, Ga. FDIC FDIC-09-217b Oct. 9
Edgebrook Bank Chicago FDIC FDIC-09-092b Oct. 23
Elkhart Community Bank Elkhart, Ind. FDIC FDIC-09-297b Oct. 2
Eurobank San Juan, P.R. FDIC FDIC-09-317b Oct. 9
Evergreen Bank Seattle FDIC FDIC-09-451b Oct. 23
The Felton Bank Felton, Del. FDIC FDIC-09-432b Oct. 27
First Bank Farmersville, Texas FDIC FDIC-09-420b Oct. 21
First City Bank of Florida Fort Walton Beach, Fla. FDIC FDIC-09-356b Oct. 15
First National Bank of Jasper Jasper, Texas OCC 2009-169 Oct. 8
First National Bank in Pawhuska Pawhuska, Okla. OCC 2009-168 Oct. 22
First State Bank Cranford, N.J. FDIC FDIC-08-166b Oct. 2
Frontenac Bank Earth City, Mo. FDIC FDIC-09-443b Oct. 21
Hillcrest Bank Overland Park, Kan. FDIC FDIC-09-390b Oct. 21
Jefferson Bank Dallas FDIC FDIC-09-452b Oct. 27
Lincoln Park Savings Bank Chicago FDIC FDIC-09-250b Oct. 6
Madisonville State Bank Madisonville, Texas FDIC FDIC-09-470b Oct. 7
Montgomery Bank & Trust Ailey, Ga. FDIC FDIC-09-325b Oct. 6
North Houston Bank Houston FDIC FDIC-09-471b Oct. 7
Oasis Bank, SSB Houston FDIC FDIC-09-387b Oct. 9
Ohana Pacific Bank Honolulu FDIC FDIC-09-517b Oct. 22
Palos Bank and Trust Co. Palos Heights, Ill. FDIC FDIC-09-279b Oct. 2
Peoples Bank and Trust Company of Clinton County Albany, Ky. FDIC FDIC-09-405b Oct. 22
Peotone Bank and Trust Co. Peotone, Ill. FDIC FDIC-09-184b Oct. 9
R-G Premier Bank of Puerto Rico Hato Rey, P.R. FDIC FDIC-06-045b Oct. 23
Southport Bank Kenosha, Wis. FDIC FDIC-09-435b Oct. 2
Sterling Savings Bank Spokane, Wash. FDIC FDIC-09-507b Oct. 9
SunFirst Bank St. George, Utah FDIC FDIC-09-409b Oct. 8
Thayer County Bank Hebron, Neb. FDIC FDIC-09-441b Oct. 5
Union Bank Kansas City, Mo. FDIC FDIC-09-441b Oct. 5
West Coast Bank Lake Oswego, Ore. FDIC FDIC-09-453b Oct. 22

The FDIC issued an order (No. FDIC-09-402c&b) on Oct. 21 terminating a temporary order to cease and desist against failed Colonial Bank of Montgomery, Ala. An order terminating notice of charges and of hearing (No. FDIC-09-402c&b) was also issued by the FDIC on Oct. 21 against Colonial.

In addition, the FDIC issued orders terminating cease-and-desist-orders against Hillcrest Bank Florida in Naples; Mainstreet Bank in Forest Lake, Minn.; First Independent Bank in Russell, Minn.; Jennings State Bank in Spring Grove, Minn.; and Brickwell Community Bank in Woodbury, Minn.

The following prompt corrective actions were recently taken.

Prompt Corrective Actions
Company Location Regulator Order/Docket No. Date
Imperial Capital Bank La Jolla, Calif. FDIC FDIC-09-553PCAS Oct. 13
LibertyPointe Bank New York FDIC FDIC-09-554PCAS Oct. 20
Marshall Bank, N.A. Hallock, Minn. OCC 2009-179 Sep. 30
Rockbridge Commercial Bank Atlanta FDIC FDIC-09-530PCAP Oct. 28

Formal agreements often require conservation of capital as well as improvements to lending operations and compliance. Banks that enter formal agreements are required to regularly report back about their performance. Some formal agreements require a change in management.

The following formal agreements were recently reached.

Formal Agreements
Company Location Regulator Order/Docket No. Date
The Bank Holdings Reno, Nev. Federal Reserve Bank of San Francisco 09-171-WA/RB-HC Nov. 23
The Community National Bank Franklin, Ohio OCC 2009-176 Oct. 19
Eagle National Bank Upper Darby, Pa. OCC 2009-177 Oct. 15
Evergreen National Bank Evergreen, Colo. OCC 2009-173 Oct. 27
First Missouri National Bank Brookfield, Mo. OCC 2009-174 Oct. 22
The First National Bank of Wynne Wynne, Ark. OCC 2009-172 Oct. 6
Hillcrest Bancshares Inc. Overland Park, Kan. Federal Reserve Bank of Kansas City 09-162-WA/RB-HC Oct. 28
Home Valley Bancorp Inc., Home Valley Bank Grants Pass, Ore. Federal Reserve Bank of San Francisco, Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities 09-186-WA/RB-HC, 09-186-WA/RB-SM Nov. 19
Modern Bank, N.A. New York OCC 2009-175 Oct. 27
Severn Bancorp Inc., Severn Savings Bank Annapolis, Md. OTS na na
Williamsburg First National Bank Kingstree, S.C. OCC 2009-178 Oct. 14

The OCC terminated a formal agreement with The Community National Bank in Franklin, Ohio.

Last month, the following removal-prohibition orders were issued.

Removal / Prohibition Orders
Individual Employer Location Order # Date
Afolabi, Abiola TD Bank, N.A. Wilmington, Del. na Oct. 2
Collins, Larry SpiritBank Tulsa, Okla. FDIC-08-301e Oct. 26
Dunckel, Tammy Michelle Key Community Bank Inver Grove Heights, Minn. FDIC-09-294e Oct. 26
Huber, Esther Bank of Hazelton Hazelton, N.D. FDIC-09-267e Oct. 26
McGinty, Criss L. Glencoe State Bank Glencoe, Okla. FDIC-09-211e Oct. 26
McGlasson, Jeffrey L. First State Bank Ketchum, Okla. FDIC-08-331e Oct. 26
Rezendes Sr., Kenneth R. Rockland Trust Co. Rockland, Mass. FDIC-09-286e Oct. 26
Sudhakaran, Raghavan K. Bank of India New York FDIC-09-381e Oct. 26

An order (FDIC-09-497e&j, FDIC-08-002e) modifying an order of prohibition against Martha E. Thompson of The Citizens Bank of Weir, Kansas, was issued by the FDIC on Oct. 23.

Regulators reported the following civil money penalties were recently issued.

Civil Money Penalties
Company / Individual Location Regulator Order/Docket No. Date Amount
1st Advantage Bank St. Peters, Mo. FDIC FDIC-09-464k Oct. 5 $2,500
Apple River State Bank Apple River, Ill. FDIC FDIC-09-039k Oct. 8 $2,695
The Bank of Kentucky Inc. Crestview Hills, Ky. FDIC FDIC-09-196k Oct. 22 $30,415
Bank of Ontario Ontario, Wis. FDIC FDIC-09-158k Oct. 8 $5,350
Community Bank of Marshall Marshall, Mo. FDIC FDIC-09-369k Oct. 8 $4,000
The Delaware County Bank and Trust Co. Lewis Center, Ohio FDIC FDIC-09-085k Oct. 9 $5,000
East Boston Savings Bank Boston FDIC FDIC-09-526k Oct. 23 $9,430
Farmers Savings Bank Wever, Iowa FDIC FDIC-09-446k Oct. 26 $2,640
The First Commonwealth bank of Prestonsburg Inc. Prestonsburg, Ky. FDIC FDIC-09-243k Oct. 22 $1,650
First Personal Bank Orland Park, Ill. FDIC FDIC-09-076k Oct. 9 $1,250
The First State Bank of Burlingame Burlingame, Kan. FDIC FDIC-09-419k Oct. 26 $8,000
Firstrust Bank Conshohocken, Pa. FDIC FDIC-09-312k Oct. 1 $10,000
Horizon Community Bank Lake Havasu City, Ariz. FDIC FDIC-09-436k Oct. 6 $6,740
Huber, Esther of Bank of Hazelton Hazelton, N.D. FDIC FDIC-09-269k Oct. 26 $5,000
Key Community Bank Inver Grove Heights, Minn. FDIC FDIC-09-295k Oct. 26 $30,000
Kimball, John G. of Marshall Bank, N.A. Hallock, Minn. OCC 2009-170 Oct. 5 na
McGlasson, Jeffrey L. of First State Bank Ketchum, Okla. FDIC FDIC-09-344k Oct. 26 $10,000
Michigan Commerce Bank Ann Arbor, Mich. FDIC FDIC-09-417k Oct. 22 $3,500
Pacific International Bank Seattle FDIC FDIC-09-359k Oct. 13 $3,740
Reeves, Robert W. of USA Bank Port Chester, N.Y. FDIC FDIC-08-076k Oct. 26 $25,000
Rockland Trust Co. Rockland, Mass. FDIC FDIC-09-287k Oct. 26 $40,000
Runde, Charles J. of First National Bank of Platteville Platteville, Wis. OCC 2009-171 Sep. 28 na
Securant Bank & Trust Menomonee Falls, Wis. FDIC FDIC-08-248k Oct. 6 $1,550
The State Bank Fenton, Mich. FDIC FDIC-08-244k Oct. 22 $1,500
State Central Bank Keokuk, Iowa FDIC FDIC-09-487k Oct. 26 $9,500
Summit Bank Prescott, Ariz. FDIC FDIC-09-495k Oct. 7 $3,960

The FDIC reported that Spirit of America National Bank in Milford, Ohio, voluntarily terminated its insurance on Oct. 30.

Orders granting permission to file application and approving applications for consent to participate in the affairs of an insured depository institution was approved by the FDIC for Steve M. Leonard (No. FDIC-09-383L) and John P. Murphy (No. FDIC-09-450L) on Oct. 5.

An administrative hearing is scheduled on Dec. 29 for Citizens Bank and Trust Company of Chicago in regard to the Matter of Robert Michael and George Michael.

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