Regulatory actions by one bank regulator have spiked compared to a year ago and were up nearly a third on a month-over-month basis. The increase spells trouble for some banks.
The Federal Home Loan Bank of Seattle disclosed last month that it entered into a Stipulation and Consent to the Issuance of a Consent Order with its regulator, the Federal Housing Finance Agency.
After the bank successfully completes a stabilization period in the second-quarter 2011, it can repurchase member capital stock and begin paying dividends given that it achieves and maintains specified financial and operational requirements; fixes problems with “its oversight and management, asset improvement program, capital adequacy and retained earnings, risk management, compensation practices, examination findings, and information technology;” and returns to a “safe and sound” condition.
At the Federal Deposit Insurance Corp., 82 matters were processed during September, jumping from 63 matters a month earlier. Regulatory activity at the FDIC has ballooned from just 48 matters during the same month last year.
The FDIC was joined by the Office of the Comptroller of the Currency in issuing 37 cease-and-desist orders or, as the FDIC now refers to them, “Consent Orders.” Banks that have failed often faced a cease-and-desist order before their demise. The FDIC issues such orders pursuant to Section 8(b), 12 U.S.C. §1818(b).
| Company | Location | Regulator | Order/Docket No. | Date |
| Bankmeridian, National Association | Columbia, SC | OCC | 2010-184 | 16-Sep |
| AmericaUnited Bank and Trust Company USA | Schaumburg, IL | FDIC | FDIC-10-457b | 24-Sep |
| Bank of Alameda | Alameda, Calif. | FDIC | FDIC-10-546b | 9/17/2010 |
| Bank of Alameda | Alameda, CA | FDIC | FDIC-10-546b | 17-Sep |
| Bank of Fairfield | Fairfield, WA | FDIC | FDIC-10-627b | 28-Sep |
| Bloomfield State Bank | Bloomfield, IN | FDIC | FDIC-10-497b | 17-Sep |
| Charter Oak Bank | Napa, CA | FDIC | FDIC-10-635b | 2-Sep |
| Citizens State Bank – Midwest | Cavalier, ND | FDIC | FDIC-10-550b | 27-Sep |
| CNLBank | Orlando, Florida | FDIC | FDIC-10-493b | 20-Sep |
| Colorado Capital Bank | Castle Rock, CO | FDIC | FDIC-10-514b | 9-Sep |
| Community Shores Bank | Muskegon, MI | FDIC | FDIC-10-397b | 2-Sep |
| Community State Bank | Austin, TX | FDIC | FDIC-10-494b | 9-Sep |
| County Bank | Rehoboth Beach, DE | FDIC | FDIC-10-454b | 20-Sep |
| Farmers State Bank of Sublette | Sublette, IL | FDIC | FDIC-10-531b | 16-Sep |
| First Savings Bank Northwest | Renton, WA | FDIC | FDIC-10-524b | 24-Sep |
| First Security Bank of Nevada | Las Vegas, NV | FDIC | FDIC-10-547b | 1-Sep |
| First Texoma National Bank | Durant, Okla. | OCC | 2010-183 | 9/17/2010 |
| Foundation Bank | Bellevue, WA | FDIC | FDIC-10-058b | 17-Sep |
| HSBC Bank USA, National Association | McLean, VA | OCC | 2010-199 | 6-Oct |
| Insouth Bank | Brownsville, TN | FDIC | FDIC-10-468b | 30-Sep |
| ISB Community Bank | Ixonia, WI | FDIC | FDIC-10-344b | 14-Sep |
| JPMorgan Chase Bank, National Association-Randy Chipman | na | OCC | 2010-200 | Aug. 30 |
| JPMorgan Chase Bank, National Association-Brett Nelson | na | OCC | 2010-187 | Oct. 4 |
| Lone Summit Bank | Lake Lotawana, MO | FDIC | FDIC-10-574b | 27-Sep |
| Minnwest Bank South | Tracy, MN | FDIC | FDIC-10-509b | 27-Sep |
| Monterey County Bank | Monterey, CA | FDIC | FDIC-09-081b, FDIC-10-221k | 29-Sep |
| Monterey County Bank | Monterey, CA | FDIC | FDIC-10-633b | 1-Sep |
| Old Harbor Bank | Clearwater, FL | FDIC | FDIC-10-463b | 1-Sep |
| Patriot Bank Minnesota | Wyoming, MN | FDIC | FDIC-10-476b | 29-Sep |
| Premier Bank | Wilmette, IL | FDIC | FDIC-10-233b | 3-Sep |
| Princeville State Bank | Princeville, IL | FDIC | FDIC-10-491b | 16-Sep |
| Service 1st Bank of Nevada | Las Vegas, NV | FDIC | FDIC-10-512b | 1-Sep |
| Texas Community Bank, National Association | The Woodlands, TX | OCC | 2010-185 | 15-Sep |
| The Elgin State Bank | Elgin, IL | FDIC | FDIC-10-439b | 9-Sep |
| Village Bank | St. Francis, MN | FDIC | FDIC-10-426b | 10-Sep |
| Washington Financial Bank | Washington, PA | FDIC | FDIC-10-506b | 3-Sep |
| Westside Community Bank | University Place, WA | FDIC | FDIC-10-450b | 24-Sep |
The FDICÂ and the OCC terminated cease-and-desist orders against six institutions.
| Company | Location | Regulator | Order/Docket No. | Date |
| First Carolina State Bank | Rocky Mount, NC | FDIC | FDIC-09-706b | 21-Sep |
| First National Bank and Trust Co. | Powell, Wyo. | OCC | EA#2008-110 | Sep. 8 |
| State Bank of Burnettsville | Burnettsville, IN | FDIC | FDIC-09-534b | 16-Sep |
| Sterling Savings Bank | Spokane, WA | FDIC | FDIC-09-507b | 27-Sep |
| Sunrise Bank of Atlanta | Atlanta, GA | FDIC | FDIC-09-728b | 3-Sep |
| The Citizens Bank of Weir, Kansas (Now Known as Cbw Bank) | Weir, KS | FDIC | FDIC-07-254b | 29-Sep |
The OCC, the Federal Reserve and several state banking regulators recently entered formal agreements with 21 institutions. Such agreements often require the conservation of capital, operational improvements and occasional management changes.
| Company | Location | Regulator | Order/Docket No. | Date |
| 1st BROOKFIELD INC. | Brookfield, Ill. | FEDERAL RESERVE BANK OF CHICAGO | 10-195-WA/RB-HC | Oct. 28 |
| First Commercial Bank of Florida | Orlando, Florida | THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. | 10-219-PCA-SM | 25-Oct |
| First National Bank of Chester County | West Chester, PA | OCC | 2010-192 | 27-Aug |
| The Camden National Bank | Camden, AL | OCC | 2010-189 | 9-Sep |
| 1st Financial Services Corporation | Hendersonville, North Carolina | FEDERAL RESERVE BANK OF RICHMOND | 10-177-WA/RB-HC | 10/13/2010 |
| CCF Holding Company | Jonesboro, Georgia | FEDERAL RESERVE BANK OF ATLANTA, BANKING COMMISSIONER OF THE STATE OF GEORGIA | 10-208-WA/RB-HC | 10/19/2010 |
| First National Bank | Groesbeck, TX | OCC | 2010-194 | 24-Aug |
| First Southwest Bancorporation, Inc. | Alamosa, Colorado | FEDERAL RESERVE BANK OF KANSAS CITY | 10-207-WA/RB-HC | 10/20/2010 |
| FNB United Corp. | Asheboro, North Carolina | FEDERAL RESERVE BANK OF RICHMOND | 10-199-WA/RB-HC | 10/21/2010 |
| GREGG BANCSHARES, INC. | Springfield, Mo. | FEDERAL RESERVE BANK OF KANSAS CITY | 10-189-WA/RB-HC | 10/5/2010 |
| Highlands Bankshares, Inc., Highlands Union Bank | Abingdon, Virginia | FEDERAL RESERVE BANK OF RICHMOND | 10-179-WA/RB-HC, 10-179-WA/RB-SM | 10/13/2010 |
| HOMETOWN OF HOMESTEAD BANKNG CO. | Homestead, Florida | FEDERAL RESERVE BANK OF ATLANTA | 10-201-WA/RB-HC | Nov. 1 |
| Investors Financial Corporation of Pettis County, Inc. | Sedalia, Missouri | FEDERAL RESERVE BANK OF KANSAS CITY | 10-184-WA/RB-HC | 10/12/2010 |
| Nevada National Bank | Las Vegas, NV | OCC | 2010-191 | 26-Aug |
| North Georgia National Bank | Calhoun, GA | OCC | 2010-190 | 13-Sep |
| NORTHERN CALIFORNIA BANCORP Inc. | Monterey, Calif. | Federal Reserve Bank of San Francisco | 10-222-WA/RB-HC | Oct. 29 |
| Omega Capital Corp. | Centennial, Colorado | FEDERAL RESERVE BANK OF KANSAS CITY | 10-213-WA/RB-HC | 20-Oct |
| Persons Banking Company, Inc. | Macon, Georgia | FEDERAL RESERVE BANK OF ATLANTA, BANKING COMMISSIONER OF THE STATE OF GEORGIA | 10-204-WA/RB-HC | 10/14/2010 |
| The First National Bank of Eagle River | Eagle River, WI | OCC | 2010-195 | 23-Sep |
| The Peoples National Bank | Easley, SC | OCC | 2010-193 | 16-Aug |
| Woodforest National Bank | The Woodlands, TX | OCC | 2010-203 | 6-Oct |
The OCC terminated agreements in September with Bankmeridian, N.A., in Columbia, S.C., and Texas Community Bank, N.A., in The Woodlands, Texas.
The FDIC and the OCC banned 15 individual from banking through Removal-and-Prohibition orders issued pursuant to Section 8(e), 12 U.S.C. § 1818(e).
| Employer | Individual | Location | Regulator | Order # | Date |
| Banterra Bank | Kenneth E. Hayse | Marion, IL | FDIC | FDIC-07-219e | 23-Sep |
| Beneficial Mutual Savings Bank | Marilyn Eldebeisi | Philadelphia, PA | FDIC | FDIC-10-331e | 23-Sep |
| Branch Banking and Trust Company | Qiana Dantelle Ruffin | Winston-Salem, NC | FDIC | FDIC-10-359e | 23-Sep |
| Carolina First Bank | Blair Witkowski | Greenville, SC | FDIC | FDIC-10-419e | 22-Sep |
| International Bank of Commerce | Jerald Brown | Laredo, TX | FDIC | FDIC-09-505e | 23-Sep |
| JPMorgan Chase Bank, National Association | Eric Wheeler | Columbus, OH | OCC | 2010-188 | 30-Aug |
| JPMorgan Chase Bank, National Association | James Chanse Carlson | Columbus, OH | OCC | 2010-196 | 30-Aug |
| JPMorgan Chase Bank, National Association | Timothy Beckstrand | Columbus, OH | OCC | 2010-201 | 4-Oct |
| North Akron Savings Bank | Patricia Lynn Davis-Boarman | Akron, OH | FDIC | FDIC-09-537e | 23-Sep |
| Republic Federal Bank National Association | Miguel Morera | Miami, FL | OCC | 2010-186 | 9-Sep |
| The Bank of Magnolia Company | John D. Hreha | Magnolia, OH | FDIC | FDIC-08-105e | 23-Sep |
| The Bank of Magnolia Company | Carla M. Woods | Magnolia, OH | FDIC | FDIC-09-017e | 23-Sep |
| The Bank of Magnolia Company | Denise M. Conley | Magnolia, OH | FDIC | FDIC-09-018e | 23-Sep |
| The Frost National Bank | Veronica D. Guerra | San Antonio, TX | OCC | 2010-197 | 7-Sep |
| The Simsbury Bank & Trust Company | Janice L. Zdun | Simsbury, CT | FDIC | FDIC-10-312e | 23-Sep |
Civil Money Penalties were issued against 30 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).
| Company | Location | Regulator | Order/Docket No. | Amount | Date |
| Woodforest National Bank | The Woodlands, TX | OCC | 2010-202 | na | 7-Oct |
| Bank of The Bluegrass and Trust Company | Lexington, KY | FDIC | FDIC-10-499k | $2,500.00 | 22-Sep |
| Bank of Wichitas | Snyder, OK | FDIC | FDIC-10-563k | $4,000.00 | 23-Sep |
| Banterra Bank-Kenneth E. Hayse | Marion, IL | FDIC | FDIC-10-063k | $25,000.00 | 23-Sep |
| Farmers State Bank | Hillsboro, WI | FDIC | FDIC-10-124k | $3,600.00 | 1-Sep |
| First Neighborhood Bank | Spencer, WV | FDIC | FDIC-10-533k | $4,750.00 | 17-Sep |
| Investors Community Bank | Manitowoc, WI | FDIC | FDIC-10-078k | $4,650.00 | 22-Sep |
| Jefferson Bank | San Antonio, TX | FDIC | FDIC-10-405k | $10,000.00 | 15-Sep |
| JPMorgan Chase Bank-Eric Wheeler | Columbus, OH | OCC | 2010-188 | na | 30-Aug |
| JPMorgan Chase Bank, National Association-Brett Nelson | Columbus, OH | OCC | 2010-187 | na | 30-Aug |
| Marathon Savings Bank | Wausau, WI | FDIC | FDIC-10-367k | $5,500.00 | 21-Sep |
| Marathon Savings Bank | Wausau, WI | FDIC | FDIC-10-369k | $4,180.00 | 21-Sep |
| Middlesex Savings Bank | Natick, MA | FDIC | FDIC-10-631k | $3,940.00 | 9-Sep |
| Monterey County Bank | Monterey, CA | FDIC | FDIC-09-081b, FDIC-10-221k | $500,000.00 | 29-Sep |
| Pacific Valley Bank | Salinas, CA | FDIC | FDIC-10-581k | $3,740.00 | 2-Sep |
| Republic Federal Bank National Association-Miguel Morera | Miami, FL | OCC | 2010-186 | na | 9-Sep |
| Sicily Island State Bank | Sicily Island, LA | FDIC | FDIC-10-566k | $3,800.00 | 23-Sep |
| State Bank of Southern Utah | Cedar City, UT | FDIC | FDIC-10-599k | $7,500.00 | 28-Sep |
| Surety Bank | Deland, FL | FDIC | FDIC-10-542k | $2,500.00 | 24-Sep |
| The Bank of Holly Springs | Holly Springs, MS | FDIC | FDIC-10-562k | $4,000.00 | 23-Sep |
| The Citizens Savings Bank | Martins Ferry, OH | FDIC | FDIC-10-338k | $3,650.00 | 2-Sep |
| The Park Bank | Madison, WI | FDIC | FDIC-10-526k | $1,650.00 | 9-Sep |
| The Peoples State Bank of Newton, Illinois | Newton, IL | FDIC | FDIC-10-371k | $1,540.00 | 8-Sep |
| Union Bank of Blair | Blair, WI | FDIC | FDIC-10-410k | $2,600.00 | 9-Sep |
| United Bank & Trust Company | Versailles, KY | FDIC | FDIC-10-388k | $4,000.00 | 22-Sep |
| United Bank & Trust Company | Versailles, KY | FDIC | FDIC-10-389k | $4,800.00 | 22-Sep |
| Valley Community Bank | Pleasanton, CA | FDIC | FDIC-10-603k | $875.00 | 23-Sep |
| Vermilion Valley Bank | Piper City, IL | FDIC | FDIC-10-481k | $1,950.00 | 8-Sep |
| West Pointe Bank | Oshkosh, WI | FDIC | FDIC-09-516k | $5,005.00 | 9-Sep |
| West Texas State Bank | Odessa, TX | FDIC | FDIC-10-597k | $7,500.00 | 2-Sep |
Five banks faced FDIC Prompt Corrective Actions, which are issued pursuant to Section 38, 12 U.S.C. § 1831o.
| Company | Location | Regulator | Order/Docket No. | Date |
| Charter Oak Bank | Napa, CA | FDIC | FDIC-10-749PCAS | 30-Sep |
| First Vietnamese American Bank | Westminster, CA | FDIC | FDIC-10-691PCAS | 28-Sep |
| FirsTier Bank | Louisville, CO | FDIC | FDIC-10-224PCAS | 21-Apr |
| Nevada Commerce Bank | Las Vegas, NV | FDIC | FDIC-10-688PCAS | 14-Sep |
| Valley Community Bank | St. Charles, IL | FDIC | FDIC-10-637PCAS | 8-Sep |
Just one institution faced an FDIC Final Order issued pursuant to Section 19, 12 U.S.C. § 1829.
| Individual | Regulator | Order/Docket No. | Date |
| Alicia Mari Evans | FDIC | FDIC-10-171L | Sep. 10 |
An order conditionally granting a waiver of Cross Guarantee Liability (No. FDIC-10-696) was issued by the FDIC pursuant to Section 5(e), 12 U.S.C. § 1815(e) for Bank of San Francisco in San Francisco on Sept. 27.
A Notice of Charge and of Hearing (No. FDIC-10-264b) was issued on Sept. 10 for Community South Bank in Parsons, Tenn. The same was issued on Sept. 17 for Pacific Rim Bank in Honolulu (No. FDIC-10-471b).
ARCUS Bank in Salt Lake City voluntarily terminated its insurance On Sept. 16 pursuant to Section (q), 12 U.S.C. § 1818(q).
