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FDIC Steps Up Regulatory Actions

Regulatory actions by the Federal Deposit Insurance Corporation against banks and thrifts jumped more than a third on a monthly basis and have more than doubled on a year-over-year basis.

The FDIC processed 104 matters during March, leaping from just 64 in February and ballooning from 42 in March 2009, data reported last week indicated. March’s activity included 42 cease-and-desist orders, 22 civil money penalties, 20 removal-and-prohibition orders and eight prompt corrective actions.

The latest month also included 42 FDIC cease-and-desist orders — which bank failures are often preceded by. Recent cease-and-desist orders by the FDIC and the Federal Reserve are listed below.

Cease-and-Desist Orders

Company Location Regulator Order/Docket No. Date
1st Commerce Bank North Las Vegas, Nev. FDIC FDIC-09-703b March 15
1st Regents Bank Andover, Minn. FDIC FDIC-09-743b March 24
Albina Community Bank Portland, Ore. FDIC FDIC-10-103b March 2
All American Bank Des Plaines, Ill. FDIC FDIC-09-551b March 13
American State Bank Tulsa, Okla. FDIC FDIC-09-755b March 16
Bank of Idaho Idaho Falls, Idaho FDIC FDIC-10-072b March 3
Bank of Las Vegas Las Vegas FDIC FDIC-09-716b March 15
Bank of Newington Newington, Ga. FDIC FDIC-09-742b March 12
Beach Community Bank Fort Walton Beach, Fla. FDIC FDIC-09-492b March 16
Brickyard Bank Lincolnwood, Ill. FDIC FDIC-09-347b March 22
California Business Bank Los Angeles FDIC FDIC-09-757b March 22
Centennial Bank Fountain Valley, Calif. FDIC FDIC-09-631b March 2
Excel Bank Sedalia, Mo. FDIC FDIC-10-021b March 16
First Carolina State Bank Rocky Mount, N.C. FDIC FDIC-09-706b March 4
First International Bank Plano, Texas FDIC FDIC-10-003b March 23
First Peoples Bank Port St. Lucie, Fla. FDIC FDIC-09-717b March 18
First Personal Bank Orland Park, Ill. FDIC FDIC-09-680b March 30
First Sound Bank Seattle FDIC FDIC-10-002b March 4
Firstier Bank Kimball, Neb. FDIC FDIC-10-041b March 17
Front Range Bank Lakewood, Colo. FDIC FDIC-10-054b March 23
Heritage Oaks Bank Paso Robles, Calif. FDIC FDIC-10-004b March 4
Innovative Bank Oakland, Calif. FDIC FDIC-10-111b March 25
Kinderhook State Bank Kinderhook, Ill. FDIC FDIC-10-015b March 30
Minnwest Bank Metro Eagan, Minn. FDIC FDIC-09-633b March 16
Northwest Bank & Trust Acworth, Ga. FDIC FDIC-09-685b March 3
One Georgia Bank Atlanta FDIC FDIC-09-741b March 23
Pacific West Bank West Linn, Ore. FDIC FDIC-09-747b March 31
PB Financial Group Inc., Premier Bank Denver Federal Reserve Board, Colorado Division of Banking 09-205-B-HC, 09-205-B-SM April 19
The Peoples State Bank Ellettsville, Ind. FDIC FDIC-10-013b March 25
Pinehurst Bank Saint Paul, Minn. FDIC FDIC-10-020b March 24
Plaza Bank Seattle FDIC FDIC-09-683b March 17
Preferred Bank Los Angeles FDIC FDIC-10-175b March 22
Ridgestone Bank Brookfield, Wis. FDIC FDIC-09-700b March 29
Security State Bank of Kenyon Kenyon, Minn. FDIC FDIC-10-022b March 25
ShoreBank Chicago FDIC FDIC-09-074b March 22
ShoreBank Pacific Ilwaco, Wash. FDIC FDIC-09-513b March 10
Slovak Savings Bank Pittsburgh FDIC FDIC-10-066b March 17
SouthShore Community Bank Apollo Beach, Fla. FDIC FDIC-09-672b March 4
SouthwestUSA Bank Las Vegas FDIC FDIC-10-140b March 3
Sunrise Bank of Atlanta Atlanta FDIC FDIC-09-728b March 3
Texas Country Bank Lakeway, Texas FDIC FDIC-10-036b March 16
Town & Country Bank Las Vegas FDIC FDIC-09-563b March 3

The FDIC announced terminations of cease-and-desist orders against 1st American State Bank of Minnesota, American State Bank, Bank of Leeton, New Resource Bank, St. Stephen State Bank and University Bank.

An adjudicated decision was entered on March 16 for a cease-and-desist order against Bank 1st in Albuquerque, N.M.

The Federal Reserve Board reported that formal agreements were recently reached with the following institutions. Formal agreements often require the impacted institutions to conserve capital and sometimes require management changes as well as improvements underwriting standards and procedures.

Formal Agreements

Company Location Regulator Order/Docket No. Date
Ameri-National Corp. Overland Park, Kan. Federal Reserve Bank of Kansas City 10- 054-WA/RB-HC April 14
The Bank of Currituck Moyock, N.C. Federal Reserve Bank of Richmond 10-046-WA/RB-SM April 19
Coast Bancorp San Luis Obispo, Calif. Federal Reserve Bank of San Francisco 10-061 -WA/RB-HC April 22
East Dubuque Bancshares Inc, East Dubuque Savings Bank East Dubuque, Ill. Federal Reserve Bank of Chicago 10-041-WA/RB-HC 10-041-WA/RB-SM April 19
First National Financial Services Inc. Elk River, Minn. Federal Reserve Bank of Minneapolis 10-029-WA/RB-HCC April 12
FMB Equibanc Inc. Statesboro, Ga. Federal Reserve Bank of Atlanta, Banking Commissioner of the State of Georgia 10- 069-WA/RB-HC April 23
Kappa Alpha Psi Federal Credit Union Dallas NCUA na April 20
Lake County Bank Saint Ignatius, Mont. Federal Reserve Bank of Minneapolis, Montana Division of Banking and Financial Institutions 10-042-WA/RB-SMC April 23
Legacy Bancorp Inc., Legacy Bank Milwaukee Federal Reserve Bank of Chicago, State of Wisconsin Department of Financial Institutions 10-053-WA/RB-HC, 10-053-WA/RB-SM April 27
Liberty Financial Group Inc. Eugene, Ore. Federal Reserve Bank of San Francisco, Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities 10- 045-WA/RB-HC April 19
The Northwestern Bank Chippewa Falls, Wis. Federal Reserve Bank of Minneapolis, and the State of Wisconsin Department of Financial Institutions 09-211-WA/RB-SM April 27
Paradise Bank Boca Raton, Fla. Federal Reserve Bank of Atlanta, State of Florida Office of Financial Regulation 10-059-WA/RB-SM, OFR Proceeding No. 0733-FI-03/10 April 16
Sun West Capital Corp. Las Vegas Federal Reserve Bank of San Francisco 10-074-WA/RB-HCC April 22
Tower Financial Corp., Tower Bank & Trust Co. Fort Wayne, Ind. Federal Reserve Bank of Chicago, and the Indiana Department of Financial Institutions 10-051-WA/RB-HC, 10-051-WA/RB-SM April 23
Tremont Credit Union Braintree, Mass. NCUA, Commonwealth of Massachusetts Division of Banks na April 30

Civil money penalties were levied by the FDIC against the following institutions or, if noted, individuals.

Civil Money Penalties

Company Individual Location Regulator Order/Docket No. Amount Date
Advantage Bank na Spencer, Okla. FDIC FDIC-10-153k $4,000 March 29
Bank of Coweta na Newnan, Ga. FDIC FDIC-10-100k $5,720 March 15
Bank of Monticello na Monticello, Ga. FDIC FDIC-10-030k $4,000 March 15
Bank of Ontario James P. DelMedico Ontario, Wis. FDIC FDIC-09-412k $10,000 March 16
The Benton State Bank na Benton, Wis. FDIC FDIC-08-303k $1,300 March 5
Catahoula-LaSalle Bank na Jonesville, La. FDIC FDIC-10-138k $6,000 March 17
Charter Bank Eau Claire na Eau Claire, Wis. FDIC FDIC-10-044k $12,700 March 25
Citizens Bank of Lafayette na Lafayette, Tenn. FDIC FDIC-10-048k $8,005 March 8
Citizens Community Bank na Hahira, Ga. FDIC FDIC-10-128k $7,315 March 16
Colonial Co-operative Bank na Gardner, Mass. FDIC FDIC-10-061k $2,500 March 15
Community State Bank Andrew George Miller Austin, Texas FDIC FDIC-09-650k $10,000 March 9
Eurobank na San Juan, P.R. FDIC, Financial Crimes Enforcement Network FDIC-10-193k $25,000 April 22
The Harrison Deposit Bank and Trust Co. na Cynthiana, Ky. FDIC FDIC-10-101k $800 March 19
Highland Community Bank na Chicago FDIC FDIC-09-424k $5,000 March 5
Hume Bank na Hume, Mo. FDIC FDIC-08-207k $10,000 March 16
Iowa State Bank na Des Moines, Iowa FDIC FDIC-10-057k $2,270 March 26
Marlborough Savings Bank na Marlborough, Mass. FDIC FDIC-10-109k $4,000 March 22
Marquette Savings Bank na Erie, Pa. FDIC FDIC-10-154k $3,500 March 30
New Millennium Bank na New Brunswick, N.J. FDIC FDIC-10-059k $2,500 March 24
New Resource Bank Stephen R. Jones San Francisco FDIC FDIC-09-477k $8,500 March 10
North Penn Bank na Scranton, Pa. FDIC FDIC-10-039k $4,000 March 4
Peoples Bank of the South na South, La Follette, Tenn. FDIC FDIC-10-123k $8,000 March 25
State Street Bank and Trust Co. na Quincy, Ill. FDIC FDIC-09-461k $2,950 March 8

FDIC removal-and-prohibition orders were issued against the following individuals.

Removal / Prohibition Orders

Employer Individual Location Regulator Order # Date
Bank of Ontario James P. DelMedico Ontario, Wis. FDIC FDIC-09-410e March 16
BankCherokee Tony J. Bianchi St. Paul, Minn. FDIC FDIC-090-407e March 16
Branch Banking and Trust Co. Janet V. Smith Winston-Salem, N.C. FDIC FDIC-09-298e March 9
The Carver State Bank Lillie B. Waring Savannah, Ga. FDIC FDIC-09-047e March 9
CB&T Bank of Middle Georgia Kandace James Warner Robins, Ga. FDIC FDIC-08-246e March 31
The Cooperative Bank Paul M. Ladouceur Roslindale, Mass. FDIC FDIC-09-518e March 3
Cornerstone Community Bank Misty Smith Chattanooga, Tenn. FDIC FDIC-08-316e March 9
Empire Bank Jamie W. Schmidt Springfield, Mo. FDIC FDIC-09-610e March 16
EuroBank Rosa Calo Calo San Juan, P.R. FDIC FDIC-09-571e March 31
First Bank of the Lake Steven S. Schmidt Osage Beach, Mo. FDIC FDIC-09-119e March 10
Great Western Bank Karla J. Rose Watertown, S.D. FDIC FDIC-09-541e March 10
The Harbor Bank of Maryland David M. Terrance Baltimore FDIC FDIC-09-606e March 9
Herrin Security Bank Dwayne Denison Herrin, Ill. FDIC FDIC-09-299e March 10
Hume Bank Jeffrey E. Thompson Hume, Mo. FDIC FDIC-08-206e March 16
KleinBank Gregory G. Meyer Big Lake, Minn. FDIC FDIC-09-644e March 10
New Resource Bank Stephen R. Jones San Francisco FDIC FDIC-09-476e March 10
ONB Bank and Trust Co. Scott M. Wright Tulsa, Okla. FDIC FDIC-09-104e March 9
The Peoples Bank Rebecca Dawn Long Ewing, Va. FDIC FDIC-09-152e March 9
Synergy Bank Melissa F. Lajuanie Houma, La. FDIC FDIC-09-320e March 9
Texas State Bank Mindy L. Joubert Joaquin, Texas FDIC FDIC-09-469e March10

The FDIC reported that the following institutions faced final orders-prompt corrective actions.

Final Orders – Prompt Corrective Actions

Company Location Regulator Order/Docket No. Date
Bank of Florida-Southeast Fort Lauderdale, Fla. FDIC FDIC-10-159PCAS March 18
Bank of Florida-Southwest Naples, Fla. FDIC FDIC-10-160PCAS March 18
Bank of Florida-Tampa Bay Tampa, Fla. FDIC FDIC-10-161PCAS March 18
City Bank Lynnwood, Wash. FDIC FDIC-10-183PCAS March 10
Desert Hills Bank Phoenix FDIC FDIC-10-172PCAS March 9
Frontier Bank Everett, Wash. FDIC FDIC-10-198PCAS March 16
Nevada Security Bank Reno, Nev. FDIC FDIC-10-194PCAS March 11
Sun West Bank Las Vegas FDIC FDIC-10-196PCAS March 12

Termination of FDIC insurance was reported for Sandy, Utah-based HealthBenefit Bank on March 19 (FDIC-10-118p) and Advanta Bank (FDIC-09-752p), Wilmington, Del., on March 9. Advanta additionally faced a Notice of Assessment of Liability, Findings of Fact and Conclusions of Law, Order to Immediately Pay Liability, and Notice of Hearing on March 19 (No. FDIC-10-049KK).

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