|Several banks recently signed agreements with the Federal Reserve to conserve capital and improve lending practices. Other institutions faced more harsh actions.
An announcement Friday indicated that cease-and-desist orders were issued by the Office of the Comptroller of the Currency against Tomatobank, N.A., in Diamond Bar, Calif.; First Security National Bank in Norcross, Ga.; and The First National Bank of Anthony in Anthony, Kan.
The OCC said it issued a civil money penalty order against Eastern National Bank in Miami. A removal-prohibition order was issued against Yumiko Edwards of Wells Fargo Bank, N.A., in Sioux Falls, S.D.
Formal agreements were reached with Flagship National Bank in Bradenton, Fla.; Riverside National Bank of Florida in Fort Pierce; The Milford National Bank and Trust Co. in Milford, Mass.; and Wachovia Bank, N.A., in Charlotte, N.C.
An existing enforcement action was terminated against City First Bank of D.C., N.A., in Washington, D.C.; and Old Missouri National Bank in Springfield, Mo., according to the OCC.
The Federal Reserve Board announced today that an agreement was executed between Miami-based Ocean Bankshares Inc. and the Federal Reserve Bank of Atlanta to conserve capital. In addition, Ocean has agreed to comply with laws and regulations, implement procedures that properly account for loan- and lease-loss allowances and report back about its progress.
The owners of Truman Bank in Clayton, Mo. -- The Templar Fund Inc., Truman Bancorp Inc. and FFC Financial Corp. -- entered an agreement with the Federal Reserve Bank of St. Louis, an announcement from the fed last week said. The order calls for improved management oversight, a diversification of lending beyond commercial real estate and an overhaul of lending and credit administration practices. In addition, the bank must adjust its accounting for loan- and lease-loss allowances, conserve capital and report back on its progress.
Michigan's Office of Financial and Insurance Regulation and the Federal Reserve Bank of Chicago entered an agreement with Michigan Heritage Bank in Farmington Hills. The agreement calls for the bank to conserve capital, improve its assets and properly account for its allowance for loan and lease losses. It also must report back on its progress.
The Federal Reserve Bank of Minneapolis has entered an agreement with Cherokee Bancshares Inc. of Saint Paul, Minn., a statement yesterday from the fed said. The bank has agreed to conserve capital, comply with laws and regulations and report back on its progress.
Birthright Inc. of Montgomery, Ala., signed an agreement with the Federal Reserve Bank of Atlanta, the fed announced yesterday. The institution has agreed to comply with laws and regulations, conserve capital and report back on its progress.
Flagstar Bancorp Inc. reported last week that the New York Stock Exchange has advised the Troy, Mich.-based company that its common stock fell below $1 per share during each of the 30 trading days ended Dec. 9. The price was in violation of the exchange's standards for continued listing.
Flagstar has six months to bring its share price and 30-day average share price above $1. The bank has 10 business days to notify the NYSE of its intent to cure this price deficiency.
Written Agreement by and between OCEAN BANKSHARES INC. Miami, Florida, and FEDERAL RESERVE BANK OF ATLANTA Atlanta, Georgia
Docket No. 08-058-WA/RB-HC, Dec. 19, 2008 (BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, Washington, D.C.)
Written Agreement by and among THE TEMPLAR FUND INC., St. Louis, Missouri, TRUMAN BANCORP INC., St. Louis, Missouri, FFC FINANCIAL CORP., St. Louis, Missouri, TRUMAN BANK, Clayton, Missouri, and FEDERAL RESERVE BANK OF ST. LOUIS, St. Louis, Missouri
Docket No. 08-053-WA/RB-HC and 08-053-WA/RB-SM, Dec. 10, 2008 (BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, Washington, D.C.)
Written Agreement by and among MICHIGAN HERITAGE BANK, Farmington Hills, Michigan, FEDERAL RESERVE BANK OF CHICAGO, Chicago, Illinois, and MICHIGAN OFFICE OF FINANCIAL AND INSURANCE REGULATION Lansing, Michigan
Docket No. 08-057-WA/RB-SM, Dec. 16, 2008 (BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, Washington, D.C.)
Written Agreement by and between CHEROKEE BANCSHARES, INC. Saint Paul, Minnesota, and FEDERAL RESERVE BANK OF MINNEAPOLIS Minneapolis, Minnesota
Docket No. 08-037-WA/RB-HC, Dec. 17, 2008 (BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, Washington, D.C.)
Written Agreement by and between BIRTHRIGHT, INCORPORATED Montgomery, Alabama, and FEDERAL RESERVE BANK OF ATLANTA Atlanta, Georgia
Docket No. 08-060-WA/RB-HC, Dec. 15, 2008 (BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, Washington, D.C.)