Banks have faced a multitude of regulatory actions lately. The number of cease-and-desist orders recently issued by federal banking regulators have been strong, though several such orders have also been terminated. The Federal Deposit Insurance Corp. has a new name for cease-and-desist orders.
Regulatory actions against financial institutions by the FDIC declined to 63 matters in August from July’s 76. A year earlier, the FDIC reported just 48 matters.
The FDIC has stopped calling final orders issued pursuant to Section 8(b), 12 U.S.C. §1818(b) “cease and desist.” Its latest list of monthly actions now refers to such orders as “consent orders.” The FDIC has gone so far as to amend its previously issued announcement for July actions, replacing the phrase “cease-and-desist” with “consent orders.”
The following cease-and-desist orders and “consent” orders were recently issued.
Cease-and-Desist and “Consent” Orders
| Company | Location | Regulator | Order/Docket No. | Date |
| Bank of Lincoln County | Fayetteville, TN | FDIC | FDIC-10-023b | 10-Aug |
| The Bank of Miami, National Association | Coral Gables, Fla. | OCC | 2010-161 | 7/21/2010 |
| Bank of the Prairie | Olathe, Kan. | FDIC | FDIC-10-459b | 26-Aug |
| Builders Bank | Chicago | FDIC | FDIC-10-535b | 5-Aug |
| Cambridge State Bank | Cambridge, WI | FDIC | FDIC-10-337b | 16-Aug |
| Colonial American Bank | Horsham, PA | FDIC | FDIC-10-473b | 11-Aug |
| The Community Bank, A Massachusetts Cooperative Bank | Brockton, MA | FDIC | FDIC-10-588b | 12-Aug |
| Community Business Bank | Sauk City, WI | FDIC | FDIC-10-455b | 9-Aug |
| Communityone Bank, National Association | Asheboro, N.C. | OCC | 2010-163 | 7/22/2010 |
| Cornerstone Bank | Enderlin, ND | FDIC | FDIC-10-470b | 12-Aug |
| Farmers Exchange Bank | Louisville, AL | FDIC | FDIC-10-392b | 5-Aug |
| First Carolina State Bank | Rocky Mount, NC | FDIC | FDIC-10-319b | 24-Aug |
| First Guaranty Bank and Trust Company of Jacksonville | Jacksonville, FL | FDIC | FDIC-09-686b | 11-Aug |
| First National Bank USA | Boutte, La. | OCC | 2010-162 | 8/13/2010 |
| First National Community Bank | Dunmore, Pa. | OCC | 2010-182 | 9/1/2010 |
| First South Bank | Spartanburg, SC | FDIC | FDIC-10-300b | 27-Aug |
| First State Bank | New London, WI | FDIC | FDIC-10-215b | 31-Aug |
| HSBC North America Holdings, Inc. | New York | Federal Reserve Board | 10-202-B-HCB-HCM | Oct. 4 |
| HSBC Bank USA, N.A. | McLean, Virginia | OCC | AA-EC-10-98B-HCM | Sep. 24 |
| Northwest Bank | Lake Oswego, OR | FDIC | FDIC-10-421b | 30-Aug |
| Ozark Heritage Bank, National Association | Mountain View, Ark. | OCC | 2010-160 | 8/26/2010 |
| Pacific Capital Bank, National Association | Santa Barbara, Calif. | OCC | 2010-168 | 9/2/2010 |
| The Park Bank | Madison, WI | FDIC | FDIC-10-318b | 13-Aug |
| Proficio Bank | Salt Lake City, UT | FDIC | FDIC-10-449b | 5-Aug |
| Securant Bank & Trust | Menomonee Falls, WI | FDIC | FDIC-10-380b | 24-Aug |
| Shorebank, Pacific | Ilwaco, WA | FDIC | FDIC-09-513b | 10-Aug |
| SouthPoint Bank | Birmingham, AL | FDIC | FDIC-10-414b | 10-Aug |
| Syringa Bank | Boise, ID | FDIC | FDIC-10-314b | 19-Aug |
| TCF National Bank | Sioux Falls, S.D. | OCC | 2010-164 | 7/20/2010 |
| United Pacific Bank | City of Industry, CA | FDIC | FDIC-10-392b | 5-Aug |
| Western Commercial Bank | Woodland Hills, CA | FDIC | FDIC-10-575b | 20-Aug |
The FDIC issued 19 orders that terminated the following cease-and-desist orders. In July, just nine such orders were issued.
Orders Terminating Cease-and-Desist Orders
| Company | Location | Regulator | Order/Docket No. | Date |
| Advanta Bank Corp. | Draper, UT | FDIC | FDIC-09-651b | 8/20/10 |
| Advanta Bank Corp. | Draper, UT | FDIC | FDIC-09-266b | 8/20/10 |
| Citizens Community Bank | Ridgewood, NJ | FDIC | FDIC-07-265b | 8/20/10 |
| Coastal Community Bank | Panama City Beach, FL | FDIC | FDIC-09-062b | 8/13/10 |
| The Community Bank, A Massachusetts Cooperative Bank | Brockton, MA | FDIC | FDIC-09-212b | 8/12/10 |
| Community National Bank at Bartow | Bartow, Fla. | OCC | Closed | 8/20/2010 |
| Community Security Bank | New Prague, MN | FDIC | FDIC-09-209b | 8/23/10 |
| Crescent Bank and Trust Co. | Jasper, GA | FDIC | FDIC-09-087b | 8/4/10 |
| Eastern National Bank | Miami | OCC | 2010-180 | 8/30/2010 |
| Eurobank | San Juan, PR | FDIC | FDIC-07-018b | 8/20/10 |
| Eurobank | San Juan, PR | FDIC | FDIC-09-317b | 8/20/10 |
| Kenney Bank and Trust | Kenney, IL | FDIC | FDIC-08-102b | 8/3/10 |
| LibertyPointe Bank | New York, NY | FDIC | FDIC-09-112b | 8/20/10 |
| Northwest Bank & Trust | Acworth, GA | FDIC | FDIC-09-685b | 8/13/10 |
| The Park Avenue Bank | New York, NY | FDIC | FDIC-08-401b | 8/26/10 |
| Peoples State Bank | Jeffersonville, GA | FDIC | FDIC-09-694b | 8/18/10 |
| R-G Premier Bank of Puerto Rico | Hato Rey, PR | FDIC | FDIC-06-045b | 8/17/10 |
| Sterling Financial Corp. | Spokane, Wash. | FDIC, Washington Department of Financial Institutions | na | announced Sep. 27 |
| Sunrise Bank of Atlanta | Atlanta, GA | FDIC | FDIC-09-696b | 8/18/10 |
| Town Center Bank | Coppell, TX | FDIC | FDIC-08-236b | 8/10/10 |
| Waterford Village Bank | Williamsville, NY | FDIC | FDIC-08-402b | 8/20/10 |
| Westernbank Puerto Rico | Mayaguez, PR | FDIC | FDIC-08-275b | 8/20/10 |
Formal agreements — which require the conservation of capital and sometimes require operational or management changes — were recently issued by the OCC and the fed.
Formal Agreements
| Company | Location | Regulator | Order/Docket No. | Date |
| American National Bank of Minnesota | Baxter, Minn. | OCC | 2010-172 | 8/20/2010 |
| Bank of the Eastern Shore | Cambridge, Md. | Federal Reserve Bank of Richmond, State of Maryland Commissioner of Financial Regulation | 10-161-WA/RB-SMC | Aug.31 |
| Butte State Co. | Butte, Neb. | Federal Reserve Bank of Kansas City, Nebraska Department of Banking and Finance | 10-180-WA/RB-HC, 10-180-WA/RB-SM | Sept. 7 |
| Financial Bancshares Co. | Becker, Minn. | FEDERAL RESERVE BANK OF MINNEAPOLIS | 10-198-WA/RB-HCC | Sep. 30 |
| First American Bancorp | Greenwood Village, Colo. | Federal Reserve Bank of Kansas City, State of Colorado Division of Banking | 10-168-WA/RB-HC, 10-168-WA/RB-SM | Aug. 20 |
| First Community Holding Co. | Hammond, La. | Federal Reserve Bank of Atlanta, Louisiana Office of Financial Institutions | 10-170-WA/RB-HCC | Sept. 3 |
| First Heritage Corp. | Carthage, Miss. | Federal Reserve Bank of Atlanta | 10-203-WA/RB-HCC | Sept. 23 |
| First National Bancorporation of Stoughton Inc. | Stoughton, Wis. | Federal Reserve Bank of Chicago | 10-153-WA/RB-HCC | Aug. 26 |
| First National Bank of The North | Sandstone, Minn. | OCC | 2010-174 | 8/2/2010 |
| First Security Group Inc. | Chattanooga, Tenn. | Federal Reserve Bank of Atlanta | 10-187-WA/RB-HCC | Sep. 7 |
| First State Bank of Warner | Warner, South Dakota | Federal Reserve Bank of Minneapolis, and the State of South Dakota, Department of Revenue and Regulation, Division of Banking | 10-169-WA/RB-SMC | Sep. 16 |
| HomeStar Financial Group, Inc. | Manteno, Illinois | FEDERAL RESERVE BANK OF CHICAGO | 10-152-WA/RB-HCC | Sep. 27 |
| The Lamesa National Bank | Lamesa, Texas | OCC | 2010-178 | 8/3/2010 |
| Los Angeles National Bank | Buena Park, Calif. | OCC | 2010-171 | 7/16/201 |
| Miners and Merchants Bancorp Inc., TruPoint Bank | Grundy, Virginia | Federal Reserve Bank of Richmond | 10-131-WA/RB-HC, 10-131-WA/RB-SM | Sept. 16 |
| Monarch Community Bancorp, Inc. | Coldwater, Michigan | Federal Reserve Bank of Chicago | 10-193-WA/RB-HCC | Sep. 21 |
| Mountain West Financial Corp. | Helena, Montana | Federal Reserve Bank of Minneapolis | 10-147-WA/RB-HCC | Aug. 31 |
| National Bank of New York City | Flushing, N.Y. | OCC | 2010-175 | 7/13/2010 |
| Nextier Bank, National Association | Evans City, Pa. | OCC | 2010-176 | 6/28/2010 |
| Neighborhood Bank Corp. | Palatka, Florida | FEDERAL RESERVE BANK OF ATLANTA | 10-197-WA/RB-HCC | Sept. 20 |
| NexTier Inc. | Butler, Pennsylvania | FEDERAL RESERVE BANK OF CLEVELAND | 10-190-WA/RB-HCC | Oct. 4 |
| Oregon Community Bank & Trust | Oregon, Wis. | Federal Reserve Bank of Chicago, State of Wisconsin Department of Financial Institutions | 10-166-WA/RB-SMC | Aug. 27 |
| Osceola Bancorporation, Inc. | Osceola, Wisconsin | Federal Reserve Bank of Minneapolis | 10-174-WA/RB-HCM | Aug. 27 |
| Pacific Mercantile Bancorp, Pacific Mercantile Ban | Costa Mesa, California | Federal Reserve Bank of San Francisco | 10-070-WA/RB-HC, 10-070-WA/RB-SMA | Aug. 31 |
| The Slocomb National Bank | Slocomb, Ala. | OCC | 2010-170 | 8/10/2010 |
| South Group Bancshares, Inc. | Glennville, Georgia | Federal Reserve Bank of Atlanta, and the Banking Commissioner of the State of Georgia | 10-183-WA/RB-HCC | Aug. 31 |
| State Bank Financial | La Crosse, Wisconsin | Federal Reserve Bank of Minneapolis, and the State of Wisconsin Department of Financial Institutions | 10-142 -WA/RB-SM | Sep. 13 |
| Texas Heritage National Bank | Daingerfield, Texas | OCC | 2010-177 | 8/12/2010 |
| TIB Financial Corp. | Naples, Florida | Federal Reserve Bank of Atlanta | 10-172-WA/RB-HCM | Sep. 13 |
| Trans Pacific Bancorp | San Francisco | Federal Reserve Bank of San Francisco | 10-186 -WA/RB-HC | Sept. 15 |
| Valley Financial Corp., Valley Bank | Roanoke, Virginia | FEDERAL RESERVE BANK OF RICHMOND | 10-167 -WA/RB-HC, 10-167 -WA/RB-SMISn | Sep. 30 |
| Western National Bank | Cass Lake, Minn. | OCC | 2010-173 | 7/13/2010 |
The OCC said it terminated formal agreements with Gold Country Bank, National Association; The Bank of Miami, National Association; First National Bank USA; and First National Bank.
Removal-and-prohibition orders were issued against the following banks. The FDIC said it issues removal-and-prohibition orders pursuant to Section 8(e), 12 U.S.C. § 1818(e).
Removal / Prohibition Orders
| Employer | Individual | Location | Regulator | Order # | Date |
| American Bank, National Association | Richard E. Magnuson | Lemars, Iowa | OCC | 2010-169 | 8/24/2010 |
| BankPlus | Charles K. Payne, Jr. | Belzoni, MS | FDIC | FDIC-09-040e | 7/21/10 |
| BMI Federal Credit Union | John Freundnerrk | Dublin, Ohioerrk | NCUA | na | announced Sep. 29 |
| Peoples Bank of the South | Warren Corban | Bude, MS | FDIC | FDIC-09-709e | 8/24/10 |
| Planters Bank & Trust Co. | Sandra Jones | Indianola, MS | FDIC | FDIC-10-152e | 8/23/10 |
| School Systems Federal Credit Union | Carla Y. Daniels | Albany, New York | NCUA | na | announced Sep. 29 |
| Seamen’s Bank | Kathleen J. Morris | Provincetown, MA | FDIC | FDIC-10-403e | 8/24/10 |
Several banks recently faced civil money penalties, which are issued by the FDIC pursuant to Section 8(i), 12 U.S.C. § 1818(i).
Final Orders – Civil Money Penalties
| Company | Location | Regulator | Order/Docket No. | Amount | Date |
| AmBank | Silver City, NM | FDIC | FDIC-10-025k | $5,600 | 3-Aug |
| American Bank, National Association (Richard E. Magnuson) | Lemar, Iowa | OCC | 2010-169 | na | 8/24/2010 |
| Bank of Bluffs | Bluffs, IL | FDIC | FDIC-10-313k | $7,150 | 6-Aug |
| Bank of Mauston | Mauston, WI | FDIC | FDIC-09-730k | $1,925 | 3-Aug |
| Bank of Stockton | Stockton, CA | FDIC | FDIC-10-523k | $7,315 | 17-Aug |
| The First National Bank of Talladega | Talladega, Ala. | OCC | 2010-165 | na | 7/27/2010 |
| Intercredit Bank, National Association | Miami | OCC | 2010-166 | na | 6/21/2010 |
| Kearney Trust Co. | Kearney, MO | FDIC | FDIC-10-492k | $2,500 | 9-Aug |
| Metro Bank | Lemoyne, PA | FDIC | FDIC-10-530k | $6,075 | 31-Aug |
| Peoples Security Bank | Louisa, KY | FDIC | FDIC-10-345k | $1,500 | 5-Aug |
| Rockwood Bank | Eureka, MO | FDIC | FDIC-10-510k | $2,000 | 23-Aug |
| Savings Bank of Mendocino County | Ukiah, CA | FDIC | FDIC-10-534k | $8,855 | 25-Aug |
| Summit Community Bank | East Lansing, MI | FDIC | FDIC-10-383k | $5,500 | 2-Aug |
| Wood & Huston Bank | Marshall, MO | FDIC | FDIC-10-460k | $13,090 | 23-Aug |
Prompt corrective actions were taken against several companies. Such actions taken by the FDIC were done pursuant to Section 38, 12 U.S.C. § 1831o.
Final Orders – Prompt Corrective Actions
| Company | Location | Regulator | Order/Docket No. | Date |
| American Patriot Bank | Greeneville, TN | FDIC | FDIC-10-472PCAS | 8/17/10 |
| First Community Bank | Taos, New Mexico | Federal Reserve Board | 10-182-PCA-SM | Aug. 26 |
| Idaho First Bank | McCall, ID | FDIC | FDIC-10-557PCAS | 8/20/10 |
| LandMark Bank of Florida | Sarasota, Florida | Federal Reserve Board | 10-188-PCA-SM | Sep. 17 |
| Peoples State Bank | Hamtramck, MI | FDIC | FDIC-10-598PCAS | 8/18/10 |
| Western Commercial Bank | Woodland Hills, CA | FDIC | FDIC-10-558PCAS | 8/5/10 |
The FDIC issues Section 19 orders pursuant to Section 19, 12 U.S.C. § 1829.
Final Orders – Section 19
| Individual | Regulator | Order/Docket No. | Date |
| Daniel Gustavo Diaz | FDIC | FDIC-10-262L | 8/23/10 |
| Todd Brian Haynes | FDIC | FDIC-10-226L | 8/11/10 |
The OCC issued a capital directive, No. 2010-167, on Sept. 1 against Florida Capital Bank, National Association, in Jacksonville, Fla.
