Monthly actions by banking regulators against federally insured institutions took a dive — falling 30 percent. The number of cease-and-desist orders issued tumbled more than 40 percent.
At the Federal Deposit Insurance Corp., 57 matters were processed during October, dropping from 82 matters a month earlier. Regulatory activity at the FDIC has shrunk significantly from the 86 matters during the same month last year.
The FDIC was joined by the Office of the Comptroller of the Currency in issuing 21 cease-and-desist orders or consent orders during October. Such orders numbered 37 in the last regulatory report. The monthly decline contrasts the FDIC’s third-quarter banking report, which indicated the number of problem institutions had risen to 860 from the second quarter’s 829 problem banks.
Historically, banks that have failed often received cease-and-desist orders 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 |
| American Founders Bank, Inc. | Lexington, KY | FDIC | FDIC-10-444b | 6-Oct |
| Border State Bank | Greenbush, MN | FDIC | FDIC-10-640b | 27-Oct |
| Brimfield Bank | Brimfield, IL | FDIC | FDIC-10-554b | 27-Oct |
| D’Hanis State Bank | D’Hanis, TX | FDIC | FDIC-10-662b | 29-Oct |
| Farmers State Bank | Lumpkin, GA | FDIC | FDIC-10-407b | 26-Oct |
| Fidelity Bank of Florida, National Association | Merritt Island, Fla. | OCC | 2010-209 | 27-Oct |
| First Capital Bank | Guthrie, OK | FDIC | FDIC-10-591b | 7-Oct |
| First Century Bank | Tazewell, TN | FDIC | FDIC-10-653b | 18-Oct |
| Heritage First Bank | Orange Beach, AL | FDIC | FDIC-10-636b | 22-Oct |
| Holbrook Co-operative Bank | Holbrook, MA | FDIC | FDIC-10-744b | 6-Oct |
| McHenry Savings Bank | McHenry, IL | FDIC | FDIC-10-739b | 29-Oct |
| Nantahala Bank & Trust Company | Franklin, NC | FDIC | FDIC-10-501b | 21-Oct |
| Nixon State Bank | Nixon, TX | FDIC | FDIC-10-504b | 12-Oct |
| Sanibel Captiva Community Bank | Sanibel, FL | FDIC | FDIC-10-502b | 1-Oct |
| Santa Clara Valley Bank, National Association | Santa Paula, Calif. | OCC | 2010-208 | 26-Oct |
| Savoy Bank | New York, New York | FDIC | FDIC-09-118b | 25-Oct |
| Sonoran Bank, National Association | Phoenix, Az. | OCC | 2010-207 | 21-Oct |
| The Delaware County Bank and Trust Company | Lewis Center, OH | FDIC | FDIC-10-559b | 27-Oct |
| Town & Country Bank and Trust Company | Bardstown, KY | FDIC | FDIC-10-560b | 8-Oct |
| United Americas Bank, National Association | Atlanta, Ga. | OCC | 2010-210 | 7-Oct |
| West One Bank | Kalispell, MT | FDIC | FDIC-10-592b | 27-Oct |
The FDIC and the OCC terminated cease-and-desist orders against nine institutions.
| Company | Location | Regulator | Order/Docket No. | Date |
| American Founders Bank, Inc. | Lexington, KY | FDIC | FDIC-07-026b | 12-Oct |
| Bank of Ellijay | Ellijay, GA | FDIC | FDIC-09-338b | 1-Oct |
| Carolina First Bank | Greenville, SC | FDIC | FDIC-10-121b | 5-Oct |
| First Bank | Farmersville, TX | FDIC | FDIC-09-420b | 13-Oct |
| First Commerce Community Bank | Douglasville, GA | FDIC | FDIC-08-339b | 1-Oct |
| Haven Trust Bank Florida | Ponte Vedra Beach, FL | FDIC | FDIC-09-623b | 13-Oct |
| The Peoples Bank | Winder, GA | FDIC | FDIC-09-590k | 4-Oct |
| Torrey Pines Bank | San Diego, CA | FDIC | FDIC-09-448b | 20-Oct |
| Westbridge Bank and Trust | Chesterfield, MO | FDIC | FDIC-09-016b | 28-Oct |
The OCC, the Federal Reserve and several state banking regulators recently entered formal agreements with 15 institutions. Such agreements often require the conservation of capital, operational improvements and, occasionally, management changes.
| Company | Location | Regulator | Order/Docket No. | Date |
| America’s Community Bank | Blue Springs, Missouri | FEDERAL RESERVE BANK OF KANSAS CITY | 10-230-WA/RB-SM | 11/17/2010 |
| Bank of Choice Holding Company | Greeley, Colorado | FEDERAL RESERVE BANK OF KANSAS CITY | 10-216-WA/RB-HC | 2-Nov |
| Cadence Financial Corporation | Starkville, Mississippi | FEDERAL RESERVE BANK OF ST. LOUIS | 10-223-WA/RB-HC | 11/17/2010 |
| Cascade Financial Corporation | Everett, Washington | FEDERAL RESERVE BANK OF SAN FRANCISCO | 10-205-WA/RB-HC | 4-Nov |
| Crete Bancorporation, Inc. | Crete, Illinois | FEDERAL RESERVE BANK OF SAN FRANCISCO | 10-212-WA/RB-HC | 1-Nov |
| Farmers State Bank | Victor, Montana | FEDERAL RESERVE BANK OF MINNEAPOLIS, MONTANA DIVISION OF BANKING AND FINANCIAL INSTITUTIONS | 10-185-WA/RB-SM | 12-Nov |
| Fentura Financial, Inc. | Fenton, Michigan | FEDERAL RESERVE BANK OF CHICAGO | 10-209-WA/RB-HC | 4-Nov |
| First National Bank South | Alma, Ga. | OCC | 2010-216 | 4-Oct |
| First Personal Financial Corp. | Orland Park, Illinois | FEDERAL RESERVE BANK OF CHICAGO | 10-200-WA /RB-HC | 1-Nov |
| Madison National Bank | Merrick, New York | OCC | 2010-217 | 11-Jun |
| Orient Bancorporation, Bank of the Orient | San Francisco, California | FEDERAL RESERVE BANK OF SAN FRANCISCO | 10-227-WA/RB-BHC, 10-227-WA/RB-SM | 16-Nov |
| Progressive Growth Corp. | Gaylord, Minnesota | FEDERAL RESERVE BANK OF MINNEAPOLIS | 10-192-WA/RB-HC | 15-Nov |
| San Antonio National Bank | Refugio, Texas | OCC | 2010-218 | 30-Sep |
| Valley Community Bancorp, Inc. | St. Charles, Illinois | FEDERAL RESERVE BANK OF CHICAGO | 10-206-WA/RB-HC | 1-Nov |
| Viking Financial Services Corporation | Seattle, Washington | FEDERAL RESERVE BANK OF SAN FRANCISCO | 10-231-WA/RB-HC | 19-Nov |
Three capital directives were issued by the OCC.
| Employer | Individual | Location | Regulator | Order # | Date |
| Canyon National Bank | na | Palm Springs, Calif. | OCC | 2010-204 | 13-Oct |
| First National Bank of Central FloridaWinter Park, Fla. | na | na | OCC | 2010-205 | 13-Oct |
| Integra Bank National Association | na | Evansville, Ind. | OCC | 2010-206 | 12-Aug |
The FDIC, OCC and National Credit Union Administration banned 14 individuals from financial institutions through removal-and-prohibition orders issued pursuant to Section 8(e), 12 U.S.C. § 1818(e).
| Employer | Individual | Location | Regulator | Amount | Order # | Date | |
| Branch Banking and Trust Company | Marilyn R. Davis | Winston-Salem, NC | FDIC | $0 | Removal-Prohibition | FDIC-10-370e | 13-Oct |
| Central Credit Union | Ira C. Rudin | Rego Park, New York | NCUA | $175,000 | Removal-Prohibition | 10-0031-R1 | 22-Nov |
| Citizens Bank of Pennsylvania | Kiesha L. Merrick | Philadelphia, PA | FDIC | $0 | Removal-Prohibition | FDIC-10-381e | 21-Oct |
| Citizens Bank of Pennsylvania | Erlanda L. Naranjo | Philadelphia, PA | FDIC | $0 | Removal-Prohibition | FDIC-10-628e | 21-Oct |
| Eastern Bank | Maria C. Faranda | Boston, MA | FDIC | $0 | Removal-Prohibition | FDIC-10-704e | 21-Oct |
| Farmers State Bank & Trust Company | Steve J. Broussard | Church Point, LA | FDIC | $0 | Removal-Prohibition | FDIC-10-202e | 13-Oct |
| First National Bank, Torrington | Scott R. Prusia | Torrington, Wyoming | OCC | $0 | Removal-Prohibition | 2010-222 | 5-Oct |
| JPMorgan Chase Bank, National Association | Victoria Toth | Columbus, Ohio | OCC | $0 | Removal-Prohibition | 2010-221 | 9-Jul |
| Macon Bank and Trust | Jill C. Troutt | Lafayette, TN | FDIC | $0 | Removal-Prohibition | FDIC-09-354e | 13-Oct |
| Moonlight Credit Union, Stanwood Area Federal Credit Union, and Vantage Trust Federal Credit Union | Eugene Miley | Worthington, New Stanton, and Wilkes-Barr Penn. | NCUA | $2,080,000 | Removal-Prohibition | 10-0032-R2 | 22-Nov |
| Naugatuck Savings Bank, (f/k/a Castle Bank & Trust Company) | Robert A. Nixon | Naugatuck, CT | FDIC | $0 | Removal-Prohibition | FDIC-10-595e | 21-Oct |
| Old National Bank | Robert E. Tolle | Evansville, Ind. | OCC | $0 | Removal-Prohibition | 2010-219 | 21-Sep |
| Passumpsic Savings Bank | Tina M. Desrochers | St. Johnsbury, VT | FDIC | $0 | Removal-Prohibition | FDIC-10-742e | 21-Oct |
| UMB Bank, National Association | Daniel Garrett | Kansas City, Missouri | OCC | $0 | Removal-Prohibition | 2010-220 | 9-Jul |
Civil Money Penalties were issued against 23 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 | Individual | Location | Regulator | Order/Docket No. | Amount | Date |
| American Community Bank | na | Glen Cove, NY | FDIC | FDIC-10-741k | $5,405 | 26-Oct |
| American Heritage Bank | na | Clovis, NM | FDIC | FDIC-10-638k | $12,750 | 27-Oct |
| BankOrion | na | Orion, IL | FDIC | FDIC-10-503k | $3,950 | 8-Oct |
| EvaBank | na | Eva, AL | FDIC | FDIC-10-363k | $15,000 | 5-Oct |
| First Bank of Dalton | na | Dalton, GA | FDIC | FDIC-10-683k | $5,500 | 25-Oct |
| First National Bank | Scott R. Prusia | Torrington, Wyoming | OCC | 2010-215 | na | 5-Oct |
| Integrity First Bank | na | Wausau, WI | FDIC | FDIC-10-525k | $5,550 | 28-Oct |
| International Bank of Commerce | na | Laredo, TX | FDIC | FDIC-10-572k | $10,000 | 27-Oct |
| Kalamazoo County State Bank | na | Schoolcraft, MI | FDIC | FDIC-10-487k | $2,500 | 27-Oct |
| Kentucky Farmers Bank Corporation (f/k/a Kentucky-Farmers Bank of Catlettsburg, Kentucky) | na | Catlettsburg, KY | FDIC | FDIC-10-527k | $2,650 | 27-Oct |
| Mountain 1st Bank & Trust Company | na | Hendersonville, NC | FDIC | FDIC-10-257k | $10,395 | 28-Oct |
| New Millennium Bank | na | New Brunswick, NJ | FDIC | FDIC-10-712k | $10,045 | 12-Oct |
| Riverhills Bank | na | New Richmond, OH | FDIC | FDIC-10-594k | $2,100 | 19-Oct |
| Security Bank National Association | Harold Connell | North Lauderdale, Fla. | OCC | 2010-211 | na | 27-Oct |
| Sunshine State Community Bank | na | Port Orange, FL | FDIC | FDIC-10-600k | $4,000 | 12-Oct |
| The Bank of Clovis | na | Clovis, NM | FDIC | FDIC-10-652k | $18,825 | 21-Oct |
| The Farmers and Merchants Bank | na | Boswell, IN | FDIC | FDIC-10-664k | $4,000 | 27-Oct |
| The Farmers and Merchants National Bank of Hatton | Kenley Just | Hatton, North Dakota | OCC | 2010-212 | na | 27-Oct |
| The Farmers and Merchants National Bank of Hatton | Ray Kvalvog | Hatton, North Dakota | OCC | 2010-213 | na | 25-Oct |
| The Farmers and Merchants National Bank of Hatton | Fred Schlanser | Hatton, North Dakota | OCC | 2010-214 | na | 27-Oct |
| The First State Bank | na | Huntsville, TX | FDIC | FDIC-10-573k | $58,900 | 26-Oct |
| United-American Savings Bank | na | Pittsburgh, PA | FDIC | FDIC-10-556k | $5,500 | 19-Oct |
| Valley Bank | na | Fort Lauderdale, FL | FDIC | FDIC-10-440k | $22,000 | 1-Oct |
Milwaukee, Wisc.-based Legacy Bank faced FDIC prompt corrective actions, while First Vietnamese American Bank of Westminster, Calif. had its supervisory prompt correction action amended. FDIC prompt corrective actions are issued pursuant to Section 38, 12 U.S.C. § 1831o.
| Company | Location | Regulator | Order/Docket No. | Date |
| First Vietnamese American Bank | Westminster, CA | FDIC | FDIC-10-691PCAS | 13-Oct |
| Legacy Bank | Milwaukee, Wisconsin | FEDERAL RESERVE BOARD | 10-228-PCA-SM | 16-Nov |
Two actions were terminated by the OCC.
| Company | Location | Regulator | Order/Docket No. | Date |
| FA, Fidelity Bank of Florida, National Association | Merritt Island, Fla. | OCC | EA# 2009-085 | 27-Oct |
| FA, The First National Bank of Trenton | Trenton, Texas | OCC | EA# 2008-088 | 18-Oct |
Four orders conditionally granting a waiver of Cross Guarantee Liability (No. FDIC-10-438kk, FDIC-10-433kk, FDIC-10-434kk, FDIC-10-435kk) were issued Oct. 26 by the FDIC pursuant to Section 5(e), 12 U.S.C. § 1815(e) for Southern Arizona Community Bank and three Colorado banks: Fort Collins Commerce Bank, Loveland Bank of Commerce and Larimer Bank of Commerce.
| Company | Location | Regulator | Order/Docket No. | Date |
| Fort Collins Commerce Bank, Loveland Bank of Commerce, Larimer Bank of Commerce | Fort Collins and Loveland, CO | FDIC | FDIC-10-433kk, FDIC-10-434kk, FDIC-10-435kk | 26-Oct |
| Southern Arizona Community Bank | Tucson, AZ | FDIC | FDIC-10-438kk | 26-Oct |
The FDIC issued orders to Ashish Aggarwal and Harshvardhan Kanda, granting them permission to file applications and approving application for consent to participate in the affair of any insured depository institution.
| Individual | Regulator | Order/Docket No. | Date |
| Ashish Aggarwal | FDIC | FDIC-10-669L | 5-Oct |
| Harshvardhan Kanda | FDIC | FDIC-10-641L | 5-Oct |
