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Banks Battle Orders

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There was no relenting for struggling banks trying to fend off regulators. Recent regulatory actions against financial institutions or their employees numbered around a hundred.

The Federal Deposit Insurance Corp. processed 76 matters during December, a modest decrease from 91 matters reported a month earlier. The decline is also reflected when compared with the 57 matters previously reported for December 2009.

In December, the FDIC issued 20 cease-and-desist orders and was joined by the Office of the Comptroller of the Currency in issuing a total of
27 cease-and-desist orders or consent orders. Such orders numbered 30 in the last regulatory report.

Failed financial institutions often faced cease-and-desist or consent orders prior to being seized by regulators. The FDIC issues such orders pursuant to Section 8(b), 12 U.S.C. §1818(b).

Cease-and-Desist or Consent Orders

Company Location Regulator Order/Docket No. Date
Alabama Trust Bank, National Association Sylacauga, AL OCC 2010-240 17-Dec
Armed Forces Bank, National Association Ft. Leavenworth, KS OCC 2010-242 14-Dec
City National Bank of New Jersey Newark, NJ OCC 2010-244 22-Dec
Collins State Bank Collins, WI FDIC FDIC-10-716b 15-Dec
First American International Bank Brooklyn, NY FDIC FDIC-10-646b 14-Dec
First Bank of Highland Park Highland Park, IL FDIC FDIC-10-644b 22-Dec
First Bank of the Palm Beaches West Palm Beach, FL FDIC FDIC-10-703b 21-Dec
First National Bank of Brookfield Brookfield, IL OCC 2010-241 9-Dec
First Southern Bank Batesville, AR FDIC FDIC-10-884b 7-Dec
First State Bank Mesquite, TX FDIC FDIC-10-814b 15-Dec
First State Bank and Trust Tonganoxie, KS FDIC FDIC-10-752b 3-Dec
Heritage Bank of Florida Lutz, FL FDIC FDIC-10-687b 14-Dec
Independence Bank East Greenwich, RI FDIC FDIC-10-811b 14-Dec
McHenry Savings Bank McHenry, IL FDIC FDIC-10-832b 14-Dec
Mitchell Bank Milwaukee, WI FDIC FDIC-10-715b 23-Dec
Park State Bank Duluth, MN FDIC FDIC-10-737b 17-Dec
Plains Commerce Bank Hoven, SD FDIC FDIC-09-620b; FDIC-09-621k 30-Dec
Premier Service Bank Riverside, CA FDIC FDIC-10-746b 1-Dec
Professional Bank Coral Gables, FL FDIC FDIC-10-803b 21-Dec
Provident Community Bank, National Association Rock Hill, SC OCC 2010-245 23-Dec
The First National Bank of Wayne Wayne, NE OCC 2010-243 8-Dec
The First State Bank Camargo, OK FDIC FDIC-10-908b 21-Dec
The Heritage Bank Hinesville, GA FDIC FDIC-10-816b 27-Dec
Tidelands Bank Mount Pleasant, SC FDIC FDIC-10-626b 28-Dec
Transcapital Bank Hallandale Beach, FL FDIC FDIC-10-586b 3-Dec
WebBank Salt Lake City, UT FDIC FDIC-10-792b; FDIC-10-793k 29-Dec
Woodlands Commercial Bank (f/k/a Lehman Brothers Commercial Bank) Salt Lake City, UT FDIC FDIC-08-242b 30-Nov

The FDIC modified a cease-and-desist order that was issued against Stockbridge, Ga.-based High Trust.

Modification of a Consent Order or an Order to Cease-and-Desist

Company Location Regulator Order/Docket No. Date
High Trust Bank Stockbridge, GA FDIC FDIC-09-486b 3-Dec


A personal cease-and-desist order was issued by the OCC against Kyle Bryant, JPMorgan Chase Bank, N.A., Columbus, Ohio, on Nov. 29.

The FDIC terminated cease-and-desist orders against five institutions during December.

The OCC, the Federal Reserve and multiple state banking regulators recently entered formal agreements with seven institutions. Such agreements often require the conservation of capital, operational improvements and, occasionally, management changes.

Formal Agreements

Company Location Regulator Order/Docket No. Date
Amfirst Bank, National Association McCook, NE OCC 2010-247 15-Dec
COKATO BANCSHARES INC. Cokato, Minn. FEDERAL RESERVE BANK OF MINNEAPOLIS 10-217-WA/RB-HC 25-Jan
Community Central Bank Corporation Mt. Clemens, MI FEDERAL RESERVE BANK OF CHICAGO 10-250-WA /RB-HC 19-Jan
Elgin Bancshares, Inc. Elgin, IL FEDERAL RESERVE BANK OF CHICAGO 10-211-WA/RB-HC 19-Jan
Intervest Bancshares Corporation New York, NY FEDERAL RESERVE BANK OF NEW YORK 10-248-WA/RB-HC 14-Jan
Intervest National Bank New York, NY OCC 2010-248 9-Dec
Rocky Mountain Capital, Rocky Mountain Bank Wilson, WY FEDERAL RESERVE BANK OF KANSAS CITY, WYOMING DEPARTMENT OF AUDIT DIVISION OF BANKING 10-249-WA/RB-HC, 10-249-WA/RB-SM 20-Jan

The FDIC, OCC and National Credit Union Administration banned 15 individuals from financial institutions through removal-and-prohibition orders issued pursuant to Section 8(e), 12 U.S.C. § 1818(e).

Removal / Prohibition Orders

Employer Location Individual Regulator Amount Order # Date
Farmers and Merchants Bank Monticello, FL Ronald Darrin McGlamry FDIC na FDIC-10-516e; FDIC-10-686k 14-Dec
Silver State Bank Henderson, NV Douglas E. French FDIC na FDIC-10-894e; FDIC-10-895k 17-Dec
Yampa Valley Bank Steamboat Springs, CO Lucy A. Middleton FDIC na FDIC-10-366e; FDIC-10-368k 14-Dec
Central Bank of Georgia Ellaville, GA William Ben Dupree, III FDIC na FDIC-10-625e; FDIC-10-624k 16-Dec
Alabama Trust Bank, National Association Sylacauga, AL Harold A. Dickson, Jr. OCC na 2010-246 16-Dec
Bank Northwest Hamilton, MO Laurine K. Calvert FDIC na FDIC-10-307e 1-Dec
Cottonport Bank Cottonport, LA Sidney J. Lemoine, III FDIC na FDIC-09-430e 1-Dec
Hancock Bank Gulfport, MS Margaret M. Migues FDIC na FDIC-10-038e 1-Dec
Hancock Bank Gulfport, MS Willie Doris Burney a/k/a Doris Burney FDIC na FDIC-10-040e 1-Dec
MagnetBank, Proficio Bank Salt Lake City, UT Randell Silcox FDIC na FDIC-10-699e 27-Dec
New Frontier Bank Greeley, CO Jamie A. Weeks FDIC na FDIC-10-694e 3-Dec
New Frontier Bank Greeley, CO John L. Kundert FDIC na FDIC-10-766e 3-Dec
Randolph Savings Bank Randolph, MA Thomas H. Drummey FDIC na FDIC-10-173e 14-Dec
Saehan Bank Los Angeles, CA Melody Song FDIC na FDIC-10-798e 27-Dec
Saehan Bank Los Angeles, CA Juhee Kim FDIC na FDIC-10-799e 27-Dec
Saehan Bank Los Angeles, CA Myung Geum FDIC na FDIC-10-800e 27-Dec
Soy Capital Bank and Trust Company Decatur, IL Scott M. Huonker FDIC na FDIC-10-482e 27-Dec

Five individuals were given a Notice of Intention to Prohibit From Further Participation, Notice of Assessment of Civil Money Penalty, Findings of Fact, and Conclusions of Law, Order to Pay, and Notice of Hearing.

Notice of Intention to Prohibit From Further Participation,
Notice of Assessment of Civil Money Penalty, Findings of Fact,
and Conclusions of Law, Order to Pay, and Notice of Hearing

Employer Location Individual Regulator Order # Date
Central Progressive Bank Lacombe, LA Richard S. Blossman, Jr. FDIC FDIC-10-605e; FDIC-10-604k 16-Dec
Farmers and Merchants Bank Monticello, FL Ronald Darrin McGlamry FDIC FDIC-10-516e; FDIC-10-686k 14-Dec
Silver State Bank Henderson, NV Douglas E. French FDIC FDIC-10-894e; FDIC-10-895k 17-Dec
Yampa Valley Bank Steamboat Springs, CO Lucy A. Middleton FDIC FDIC-10-366e; FDIC-10-368k 14-Dec
Central Bank of Georgia Ellaville, GA William Ben Dupree, III FDIC FDIC-10-625e; FDIC-10-624k 16-Dec

Civil Money Penalties were issued against 25 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).

Final Orders – Civil Money Penalties

Company Location Individual Regulator Amount Order/Docket No. Date
Bank of South Texas McAllen, TX Darryl Lemke FDIC $5,000.00 FDIC-10-751k 1-Dec
Central Co-operative Bank Somerville, MA na FDIC $9,500.00 FDIC-10-819k 9-Dec
Citizens Community Bank Ridgewood, NJ na FDIC $2,000.00 FDIC-09-480k 13-Dec
Citizens Community Bank Ridgewood, NJ na FDIC $5,000.00 FDIC-09-481k 13-Dec
Citizens Community Bank Ridgewood, NJ na FDIC $5,000.00 FDIC-09-482k 13-Dec
Citizens Community Bank Ridgewood, NJ na FDIC $5,000.00 FDIC-09-483k 13-Dec
Citizens Community Bank Ridgewood, NJ na FDIC $5,000.00 FDIC-09-484k 13-Dec
Citizens Savings Bank and Trust Company Nashville, TN na FDIC $15,000.00 FDIC-10-611k 9-Dec
Clinton Savings Bank Clinton, MA na FDIC $9,740.00 FDIC-10-812k 15-Dec
Community Bank Alton, IA Thomas E. Kiernan FDIC $10,000.00 FDIC-10-720k 21-Dec
Community Bank Alton, IA Loren J. Veldhuizen FDIC $5,000.00 FDIC-10-721k 21-Dec
Community Bank Alton, IA Gerald G. Langel FDIC $5,000.00 FDIC-10-722k 21-Dec
Community Bank Alton, IA Roger F. Cambier FDIC $5,000.00 FDIC-10-723k 21-Dec
Community Bank Alton, IA Donald W. Theharne FDIC $10,000.00 FDIC-10-724k 21-Dec
Community Bank Alton, IA Jacalyn J. Fedders FDIC $10,000.00 FDIC-10-725k 21-Dec
Community Bank of the Cumberlands Jamestown, TN na FDIC $4,410.00 FDIC-10-693k 3-Dec
Community First Bank Butler, MO na FDIC $1,500.00 FDIC-10-689k 2-Dec
Finance Factors, Ltd. Honolulu, HI na FDIC $8,450.00 FDIC-10-835k 8-Dec
Greater Rome Bank Rome, GA na FDIC $8,000.00 FDIC-10-647k 6-Dec
Highland Bank Saint Michael, MN na FDIC $13,000.00 FDIC-10-606k 2-Dec
Merchants and Planters Bank Raymond, MS na FDIC $5,000.00 FDIC-10-617k 30-Dec
Plains Commerce Bank Hoven, SD na FDIC $850,000.00 FDIC-09-620b; FDIC-09-621k 29-Dec
State Bank of Lizton Lizton, IN na FDIC $3,700.00 FDIC-10-579k 21-Dec
WebBank Salt Lake City, UT na FDIC $300,000.00 FDIC-10-792b; FDIC-10-793k 30-Dec
Alabama Trust Bank, National Association Sylacauga, AL Harold A. Dickson, Jr. OCC 2010-246 16-Dec
State Bank of Park Rapids Park Rapids, MN Jon P. Smythe FDIC FDIC-09-149k 16-Dec

The FDIC gave Notice of Assessment of Civil Money Penalty, Findings of Fact and Conclusions of Law, Order to Pay, and Notice of Hearing to Jon P. Smythe, State Bank of Park Rapids, Park Rapids, Minn.

Two individuals faced FDIC Final Orders issued pursuant to Section 19, 12 U.S.C. § 1829.

Final Orders – Section 19

Individual Regulator Order/Docket No. Date
John Wilson Blair FDIC FDIC-10-601L 27-Dec
Tony Dean Leite FDIC FDIC-10-385L 14-Dec

Two institutions received FDIC Final Orders for Voluntary Termination of Insurance.

Final Orders – Voluntary Termination of Insurance

Institution Location Regulator Order/Docket No. Date
Guardian Trust Company, FSB New York, NY FDIC FDIC-10-448p 30-Dec
Pyramis Global Advisors Trust Company Merrimack, NH FDIC FDIC-10-897p 22-Dec

Prompt Corrective Actions were issued against four companies by the FDIC and the Federal Reserve Board. FDIC prompt corrective actions are issued pursuant to Section 38, 12 U.S.C. § 1831o.

Final Orders – Prompt Corrective Actions

Company Location Regulator Order/Docket No. Date
Evergreen State Bank Stoughton, WI FDIC FDIC-10-859PCAS 10-Dec
First Southern Bank Batesville, AR FDIC FDIC-10-901PCAS 7-Dec
The Bank of Commerce Wood Dale, IL FDIC FDIC-10-767PCAS 2-Dec
Virginia Business Bank Richmond, VA FEDERAL RESERVE BOARD 11-007-PCA-SM 24-Jan


In addition, an order terminating supervisory prompt corrective action directive was issued for
Spokane, Wash.-based AmericanWest Bank by the FDIC.

Six actions were terminated by the OCC.

Terminations of Existing Enforcement Actions

Company Location Regulator Order/Docket No. Date
C&D, Armed Forces Bank, National Association Ft. Leavenworth, KS OCC 2010-242, EA# 2010-100 14-Dec
FA, Alabama Trust Bank, National Association Sylacauga, AL OCC 2010-240, EA# 2009-081 17-Dec
FA, Albany Bank & Trust, National Association Albany, GA OCC 2010-250, EA# 2006-88 20-Dec
FA, City National Bank of New Jersey Newark, NJ OCC 2010-244, EA#2009-110 22-Dec
FA, First National Bank of Brookfield Brookfield, IL OCC 2010-241, EA# 2008-114 9-Dec
FA, The First National Bank of Wayne Wayne, NE OCC 2010-251, EA#2008-139 20-Dec

The FDIC also amended a Notice of Charges and of Hearing for Synergy Bank, S.S.B. in McKinney, Texas.

The OCC issued one restitution order (#2010-246) to Harold A. Dickson, Jr., Alabama Trust Bank, National Association in Sylacauga, Ala.

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