A jump in monthly cease-and-desist orders against banks could indicate a bump ahead for failed institutions. Overall regulatory actions were heavier.
The Federal Deposit Insurance Corp. processed 91 matters during November, a sharp increase from the 57 matters reported a month earlier. The increase was even more striking when compared with 51 matters previously reported for November 2009.
The Federal Reserve Board executed a formal agreement Dec. 7 with Charlotte, N.C.-based Bank of America, the same day the Securities and Exchange Commission filed a cease-and-Desist proceedings order against Banc of America Securities LLC, now known as Merrill Lynch, Pierce, Fenner & Smith Incorporated, successor by merger.
Bank of America entered into agreements with the SEC, the Internal Revenue Service, the Office of the Comptroller of the Currency and 20 state attorneys general. The financial institution has agreed to pay $137.3 million in restitution to federal and state agencies as a condition of the Justice Department’s Antitrust Corporate Leniency Program, according to a government news release.
The FDIC last month modified a cease and desist order that was issued against Lenox, Ga.-based The Trust Bank, formerly known as, Bank of Lenox.
A decision and order to prohibit from further participation was handed down to Cheryl Ann High from the FDIC on Nov. 9. High was a former employee of Union City, N.J.-based Hudson United Bank, now known as TD Bank, National Association in Wilmington, Del.
The FDIC also gave a notice of assessment of civil money penalty, findings of fact and conclusions of law, order to pay, and notice of hearing against Salvatore Pane and Port Chester, N.Y.-based USA Bank (in receivership) on Nov. 4, 2010.
The FDIC issued 28 cease-and-desist orders and was joined by the OCC in issuing a total of 30 cease-and-desist orders or consent orders during November. Such orders numbered 21 in the last regulatory report.
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 |
| Access 1st Capital Bank | Denton, TX | FDIC | FDIC-10-697b | Nov. 1 |
| Banc of America Securities LLC, now known as Merrill Lynch, Pierce, Fenner & Smith Incorporated, successor by merger | na | Securities and Exchange Commission | File No. 3-14153 | Dec. 7 |
| Bank of Wausau | Wausau, WI | FDIC | FDIC-10-488b | Nov. 17 |
| Community Bank of Oak Park River Forest | Oak Park, IL | FDIC | FDIC-10-500b | Nov. 10 |
| Community Central Bank | Mount Clemens, MI | FDIC | FDIC-10-561b | Nov. 1 |
| Fairview State Banking Company | Fairview, IL | FDIC | FDIC-10-536b | Nov. 19 |
| First Capital Bank | Marianna, FL | FDIC | FDIC-10-537b | Nov. 15 |
| First Citizens Bank of Polson, National Association | Polson, Montana | OCC | 2010-223 | Nov. 9 |
| First Home Bank | Seminole, FL | FDIC | FDIC-10-673b | Nov. 18 |
| First Intercontinental Bank | Doraville, GA | FDIC | FDIC-10-464b | Nov. 23 |
| Fox River State Bank | Burlington, WI | FDIC | FDIC-10-658b | Nov. 4 |
| Grand Bank & Trust of Florida | West Palm Beach, FL | FDIC | FDIC-10-692b | Nov. 19 |
| Integrity First Bank | Wausau, WI | FDIC | FDIC-10-395b | Nov. 3 |
| Lake Region Bank | New London, MN | FDIC | FDIC-10-532b | Nov. 17 |
| Metro Phoenix Bank | Phoenix, AZ | FDIC | FDIC-10-759b | Nov. 10 |
| Mid-Wisconsin Bank | Medford, WI | FDIC | FDIC-10-807b | Nov. 9 |
| New Market Bank | Elko-New Market, MN | FDIC | FDIC-10-608b | Nov. 23 |
| New Millennium Bank | New Brunswick, NJ | FDIC | FDIC-10-837b | Nov. 16 |
| NewDominion Bank | Charlotte, NC | FDIC | FDIC-10-553b | Nov. 9 |
| One World Bank | Dallas, TX | FDIC | FDIC-10-505b | Nov. 1 |
| Pan American Bank | Los Angeles, CA | FDIC | FDIC-10-718b | Nov. 5 |
| Regent Bank | Davie, FL | FDIC | FDIC-10-609b | Nov. 24 |
| Seattle Bank | Seattle, WA | FDIC | FDIC-10-830b | Nov. 30 |
| Signature Bank of Arkansas | Fayetteville, AR | FDIC | FDIC-10-602b | Nov. 4 |
| State Bank of Taunton | Taunton, MN | FDIC | FDIC-10-776b | Nov. 8 |
| SunFirst Bank | St. George, UT | FDIC | FDIC-10-845b | Nov. 9 |
| The Leaders Bank | Oak Brook, IL | FDIC | FDIC-10-511b | Nov. 3 |
| The Tampa State Bank | Tampa, KS | FDIC | FDIC-10-743b | Nov. 23 |
| United American Bank | San Mateo, CA | FDIC | FDIC-10-424b | Nov. 2 |
| Westbound Bank | Katy, TX | FDIC | FDIC-10-668b | Nov. 12 |
| Company | Location | Regulator | Order/Docket No. | Date |
| The Trust Bank, F/K/A Bank of Lenox | Lenox, GA | FDIC | FDIC-10-538L | Nov. 23 |
The FDIC terminated cease-and-desist orders against 13 institutions.
| Company | Location | Regulator | Order/Docket No. | Date |
| Bank of Agriculture and Commerce | Stockton, CA | FDIC | FDIC-08-408b | Nov. 4 |
| Butler Bank | Lowell, MA | FDIC | FDIC-09-148b | Nov. 22 |
| First Asian Bank | Las Vegas, NV | FDIC | FDIC-10-220b | Nov. 30 |
| First Bank of Jacksonville | Jacksonville, FL | FDIC | FDIC-09-355b | Nov. 19 |
| First Resource Bank | Savage, MN | FDIC | FDIC-09-269b | Nov. 3 |
| Fox River State Bank | Burlington, WI | FDIC | FDIC-09-226b | Nov. 4 |
| Hillcrest Bank | Overland Park, KS | FDIC | FDIC-09-390b | Nov. 8 |
| McClave State Bank | McClave, CO | FDIC | FDIC-08-118b | Nov. 16 |
| Mountain Commerce Bank | Erwin, TN | FDIC | FDIC-08-213b | Nov. 29 |
| Statewide Bank | Covington, LA | FDIC | FDIC-08-369b | Nov. 29 |
| The Gordon Bank | Gordon, GA | FDIC | FDIC-09-109b | Nov. 24 |
| West Suburban Bank | Lombard, IL | FDIC | FDIC-08-183b | Nov. 19 |
| West Suburban Bank | Lombard, IL | FDIC | FDIC-08-384b | Nov. 22 |
The OCC, the Federal Reserve and several state banking regulators recently entered formal agreements with 28 institutions. Such agreements often require the conservation of capital, operational improvements and, occasionally, management changes.
| Company | Location | Regulator | Order/Docket No. | Date |
| Bank of America Corporation | Charlotte, North Carolina | Federal Reserve Bank of Richmond | 10-240-WA/RB-HC | Dec. 6 |
| Bank of America, National Association | Charlotte, North Carolina | OCC | 2010-239 | Dec. 7 |
| Baylake Corp., Baylake Bank | Sturgeon Bay, Wisconsin | Federal Reserve Bank of Chicago, State of Wisconsin Department of Financial Institutions | 10-149-WA/RB-HC, 10-149-WA/RB-SM | Dec. 23 |
| Boscobel Bancorp, Inc. and Community First Bank | Boscobel, Wis. | FEDERAL RESERVE BANK OF CHICAGO, STATE OF WISCONSIN DEPARTMENT OF FINANCIAL INSTITUTIONS | 10-233-WA/RB-HC, 10-233-WA/RB-SM | Dec. 23 |
| Capital Commerce Bancorp Inc. | Milwaukee, Wis. | FEDERAL RESERVE BANK OF CHICAGO | 10-247-WA/RB-HC | Dec. 31 |
| City National Bancshares Corporation | Newark, New Jersey | Federal Reserve Bank of New York | 10-229-WA/RB-HC | Dec. 14 |
| Community Shores Bank Corporation | Muskegon, Michigan | Federal Reserve Bank of Chicago | 10-243-WA/RB-HC | Dec. 16 |
| Empire National Bank | Islandia, New York | OCC | 2010-226 | Oct. 21 |
| FCB Financial Corp. | Savannah, Georgia | Federal Reserve Bank of Atlanta, Banking Commissioner of the State of Georgia | 10-221-WA/RB-HC | Nov. 12 |
| FEB Bancshares, Inc. | Louisville, Alabama | Federal Reserve Bank of Atlanta | 10-234-WA/RB-HC | Dec. 21 |
| First Community Bank | Glasgow, Montana | Federal Reserve Bank of Minneapolis, Montana Division of Banking and Financial Institutions | 10-194-WA/RB-SM | Nov. 29 |
| First International Bancorp of Texas, Inc., First International Bancorp America | Plano, Texas/Reno, Nevada | Federal Reserve Bank of Dallas | 10-239-WA/RB-HC | Dec.15 |
| The First National Bank of Fleming | Fleming, Colorado | OCC | 2010-237 | Nov. 19 |
| The First National Bank of Mercersburg | Mercersburg, Penn. | OCC | 2010-229 | Oct. 27 |
| First National Community Bancorp, Inc. | Dunmore, Pennsylvania | Federal Reserve Bank of Philadelphia | 10-220-WA/RB-HC | Nov. 24 |
| First South Bancorp, Inc. | Spartanburg, South Carolina | Federal Reserve Bank of Richmond | 10-225-WA/RB-HC | Nov. 23 |
| Foundation Bancorp Inc. | Bellevue, Wash. | FEDERAL RESERVE BANK OF SAN FRANCISCO | 10-235-WA/RB-HC | Dec. 23 |
| HarVest Bancorp, Inc. | Gaithersburg, Maryland | Federal Reserve Bank of Richmond | 10-215 -WA/RB-HC | Nov. 22 |
| The Headland National Bank | Headland, Alabama | OCC | 2010-225 | Nov. 9 |
| Lino Lakes Banc Shares, Inc. | Forest Lake, Minnesota | Federal Reserve Bank of Minneapolis | 10-226-WA/RB-HC | Dec. 2 |
| Metropolitan Bank Holding Corp. | New York | FEDERAL RESERVE BANK OF NEW YORKCISCO | 10-237-WA/RB-HC | Jan. 4 |
| Norcal Community Bancorp | Alameda, California | Federal Reserve Bank of San Francisco | 10-242-WA/RB-HC | Dec. 20 |
| Omnibank, National Association | Houston, Texas | OCC | 2010-230 | Nov. 18 |
| Oxford Financial Corporation | Oak Brook, Illinois | Federal Reserve Bank of Chicago | 10-224-WA/RB-HC | Nov. 29 |
| Prairie Star Bancshares Inc. | Olathe, Kan. | FEDERAL RESERVE BANK OF KANSAS CITY | 10-246-WA/RB-HC | Dec. 22 |
| Ridgestone Financial Services, Inc. | Brookfield, Wisconsin | Federal Reserve Bank of Chicago | 10-210-WA /RB-HC | Nov. 29 |
| Santa Lucia Bancorp, Santa Lucia Bank | Atascadero, California | Federal Reserve Bank of San Francisco | 10-238-WA/RB-HC, 10-238-WA/RB-SM | Dec. 23 |
| Southport Financial Corporation | Kenosha, Wisconsin | Federal Reserve Bank of Chicago | 10-196-WA/RB-HC | Nov. 24 |
| The Suffolk County National Bank of Riverhead | Riverhead, New York | OCC | 2010-228 | Oct. 25 |
| TCSB Bancorp, Inc. | Traverse City, Michigan | Federal Reserve Bank of Chicago | 10-214-WA/RB-HC | Dec. 6 |
| Village Bancshares, Inc. | St. Francis, Minnesota | Federal Reserve Bank of Minneapolis | 10-218-WA/RB-HC | Dec. 1 |
| Weststar Financial Services Corporation | Asheville, North Carolina | Federal Reserve Bank of Richmond | 10-232-WA/RB-HC | Dec. 9 |
| Wilber National Bank | Oneonta, New York | OCC | 2010-227 | Oct.13 |
The FDIC, OCC and National Credit Union Administration banned 18 individuals from financial institutions through removal-and-prohibition orders issued pursuant to Section 8(e), 12 U.S.C. § 1818(e).
| Employer | Location | Individual | Regulator | Amount | Order # | Date |
| Algonquin State Bank, National Association | Algonquin, Illinois | Elaine J. Hopkins | OCC | na | 2010-232 | Nov. 15 |
| Bank of Crocker | Waynesville, MO | Troy W. Posten | FDIC | na | FDIC-10-390e | Nov. 10 |
| Branch Banking and Trust Company | Winston-Salem, NC | Chester Williams | FDIC | na | FDIC-09-488e | Nov. 9 |
| Citizens Union Bank of Shelbyville, Century Bank of Kentucky | Shelbyville, KY, Lawrenceburg, KY | Roy T. Edwards | FDIC | na | FDIC-09-197e | Nov. 17 |
| D. Edward Wells Federal Credit Union | Springfield, Mass. | Carol Aranjo | NCUA | $1,400,000 | 10-0046-R1 | Nov. 4 |
| First National Bank of Platteville | Platteville, WI | James L. Klein | OCC | na | 2010-224 | Nov. 1 |
| Hometown Bank of Villa Rica | Villa Rica, GA | S. Pope Cleghorn, Jr. | FDIC | na | FDIC-10-155e | Nov. 18 |
| Hudson United Bank, n/k/a TD Bank, National Association | Union City, New Jersey/Wilmington, DE | Cheryl Ann High | FDIC | na | FDIC-08-291e | Nov. 9 |
| New Frontier Bank | Greeley, CO | Greg Bell | FDIC | na | FDIC-10-551e | Nov. 4 |
| New Frontier Bank | Greeley, CO | Jack P. Renfroe | FDIC | na | FDIC-10-544e | Nov. 4 |
| New Frontier Bank | Greeley, CO | John O. Kammeier | FDIC | na | FDIC-10-543e | Nov. 4 |
| New Frontier Bank | Greeley, CO | Larry G. Seastrom | FDIC | na | FDIC-10-539e | Nov. 4 |
| New Frontier Bank | Greeley, CO | Robert J. Brunner | FDIC | na | FDIC-10-540e | Nov. 4 |
| New Frontier Bank | Greeley, CO | Timothy W. Thissen | FDIC | na | FDIC-10-541e | Nov. 4 |
| Omni Bank | Metairie, LA | Lynne Fruchtnicht | FDIC | na | FDIC-09-602e | Nov. 9 |
| Riverland Bank | Jordan, MN | Ronald E. Shealer | FDIC | na | FDIC-10-005e | Nov. 9 |
| Tinker Federal Credit Union | Oklahoma City, Oklahoma | Donna Kay Gainer | NCUA | $32,790 | 10-0047-R4 | Nov. 3 |
| United Bank | Atmore, AL | George L. Price, Jr. | FDIC | na | FDIC-10-265e; FDIC-10-446k | Nov. 10 |
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 | Individual | Regulator | Amount | Order/Docket No. | Date |
| Alliance Bank | Lake City, MN | na | FDIC | $7,190 | FDIC-10-583k | Nov. 3 |
| Blackhawk State Bank | Beloit, WI | na | FDIC | $4,500 | FDIC-10-298k | Nov. 12 |
| California Pacific Bank | San Francisco, CA | na | FDIC | $1,925 | FDIC-10-808k | Nov. 8 |
| Century Bank and Trust | Milledgeville, GA | na | FDIC | $2,250 | FDIC-10-650k | Nov. 9 |
| Chester County Bank | Henderson, TN | na | FDIC | $4,000 | FDIC-10-710k | Nov. 30 |
| Citizens State Bank | Miles, TX | na | FDIC | $10,500 | FDIC-10-564K | Nov. 22 |
| Citizens Union Bank of Shelbyville, Century Bank of Kentucky | Shelbyville, KY, Lawrenceburg, KY | na | FDIC | $1,000 | FDIC-10-479k | Nov. 17 |
| EvaBank | Eva, AL | na | FDIC | $10,000 | FDIC-10-607k | Nov. 23 |
| Exchange Bank | Milledgeville, GA | na | FDIC | $5,250 | FDIC-10-685k | Nov. 18 |
| Farmers & Merchants State Bank | Waterloo, WI | na | FDIC | $5,535 | FDIC-10-408k | Nov. 12 |
| Farmers & Merchants State Bank | Waterloo, WI | na | FDIC | $3,000 | FDIC-10-409k | Nov. 12 |
| First National Bank of Platteville | Platteville, WI | James L. Klein | OCC | na | 2010-224 | Nov. 1 |
| First Security Trust and Savings Bank | Elmwood Park, IL | na | FDIC | $4,250 | FDIC-10-458k | Nov. 3 |
| First State Bank | New London, WI | na | FDIC | $16,300 | FDIC-10-623k | Nov. 12 |
| First State Bank of Forsyth | Forsyth, MT | na | FDIC | $2,640 | FDIC-10-729k | Nov. 16 |
| FirstBank of Colorado | Lakewood, CO | na | FDIC | $50,000 | FDIC-10-480k | Nov. 10 |
| Foundation Bank | Bellevue, WA | na | FDIC | $5,000 | FDIC-10-734k | Nov. 15 |
| Lisle Savings Bank | Lisle, IL | na | FDIC | $5,500 | FDIC-09-157k | Nov. 3 |
| Merrimac Savings Bank | Merrimac, MA | na | FDIC | $5,000 | FDIC-10-810k | Nov. 2 |
| Metropolitan National Bank | New York, NY | na | OCC | na | 2010-238 | Nov. 5 |
| Mid America Bank | Linn, MO | na | FDIC | $23,000 | FDIC-10-717k | Nov. 22 |
| Northwest Georgia Bank | Ringgold, GA | na | FDIC | $23,485 | FDIC-10-684k | Nov. 18 |
| Omni Bank | Metairie, LA | Lynne Fruchtnicht | FDIC | $5,000 | FDIC-09-604k | Nov. 9 |
| Oostburg State Bank | Oostburg, WI | na | FDIC | $5,500 | FDIC-10-412k | Nov. 12 |
| Peach State Bank & Trust | Gainesville, GA | na | FDIC | $4,000 | FDIC-10-783k | Nov. 18 |
| Regional Missouri Bank | Marceline, MO | na | FDIC | $17,325 | FDIC-10-732k | Nov. 12 |
| Riverland Bank | Jordan, MN | Ronald E. Shealer | FDIC | $6,500 | FDIC-10-006k | Nov. 9 |
| The Peoples Bank | IVA, SC | na | FDIC | $5,500 | FDIC-10-758k | Nov. 18 |
| United Bank | Atmore, AL | George L. Price, Jr. | FDIC | $5,000 | FDIC-10-265e; FDIC-10-446k | Nov. 10 |
| USA Bank (In Receivership) | Port Chester, NY | Salvatore Pane | FDIC | na | FDIC-08-076k (Notice of Assessment of Civil Money Penalty, Findings of Fact and Conclusions of Law, Order to Pay, and Notice of Hearing) | Nov. 10 |
| Waterstone Bank, SSB | Wauwatosa, WI | na | FDIC | $5,775 | FDIC-10-485k | Nov. 19 |
Four individuals faced FDIC Final Orders issued pursuant to Section 19, 12 U.S.C. § 1829.
| Individual | Regulator | Order/Docket No. | Date |
| Ricardo Javier Crespin | FDIC | FDIC-10-655L | Nov. 22 |
| John Harvey Cross | FDIC | FDIC-10-736L | Nov. 23 |
| Kim David Gilmore | FDIC | FDIC-10-378L | Nov. 5 |
| William Lee Gray Jr. | FDIC | FDIC-10-538L | Nov. 23 |
Prompt Corrective Actions were issued against five companies by the FDIC, Federal Reserve Board and OCC. FDIC prompt corrective actions are issued pursuant to Section 38, 12 U.S.C. § 1831o.
| Company | Location | Regulator | Order/Docket No. | Date |
| Albina Community Bank | Portland, OR | FDIC | FDIC-10-860PCAS | Nov. 17 |
| BankEast | Knoxville, Tenn. | Federal Reserve Board | 10-245-PCA-SM | Dec. 22 |
| MBank | Gresham, OR | FDIC | FDIC-10-829PCAS | Nov. 2 |
| The Park Avenue Bank | Valdosta, Georgia | Federal Reserve Board | 10-231-PCA-SM | Dec. 13 |
| Western Springs National Bank and Trust | Western Springs, Illinois | OCC | 2010-231 | Nov. 18 |
Five actions were terminated by the OCC.
| Company | Location | Regulator | Order/Docket No. | Date |
| FA, Castle Bank, National Association | Dekalb, Illinois | OCC | EA# 2009-107/2010-234 | Nov. 1 |
| FA, First Citizens Bank of Polson, National Association | Polson, Montana | OCC | EA# 2008-117/2010-223 | Nov. 9 |
| FA, First National Bank | Fort Collins, Colorado | OCC | EA# 2009-105/2010-233 | Nov. 1 |
| FA, First National Bank of Kansas | Overland Park, KS | OCC | EA# 2009-108/2010-235 | Nov. 1 |
| FA, The Milford National Bank and Trust Company | Milford, Massachusetts | OCC | EA# 2008-155/2010-236 | Oct. 13 |
