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Financial Institutions Face FDIC, Fed Actions

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Recent regulatory actions against U.S. financial institutions eased on a monthly basis but were still well above a year ago. Most of the latest activity was reported by the Federal Deposit Insurance Corporation, though the Federal Reserve processed a few actions itself.

During February, the FDIC processed 64 matters, fewer than 67 the prior month, a news release Friday said. In February 2009, 45 orders were processed.

Among last month’s FDIC orders were the following cease-and-desist orders. Failed financial institutions often face such orders prior to being seized by regulators.

Cease-and-Desist Orders

Company Location Regulator Order/Docket No. Date
American Enterprise Bank Buffalo Grove, Ill. FDIC FDIC-09-660b Feb. 24
Bank of Coral Gables Coral Gables, Fla. FDIC FDIC-09-690b Feb. 11
The Bank of Perry Perry, Ga. FDIC FDIC-09-638b Feb. 25
Bank of Valdosta Valdosta, Ga. FDIC FDIC-09-693b Feb. 18
Bay Bank Theodore, Ala. FDIC FDIC-09-647b Feb. 5
Central Arizona Bank Casa Grade, Ariz. FDIC FDIC-09-673b Feb. 8
CF Bancorp Port Huron, Mich. FDIC FDIC-09-676b Feb. 24
Champion Bank Parker, Colo. FDIC FDIC-09-749b Feb. 24
Citizens Bank of Northern California Nevada City, Calif. FDIC FDIC-10-053b Feb. 11
Commerce Bank of Temecula Valley Murrieta, Calif. FDIC FDIC-10-104b Feb. 11
Community Bank of Central Wisconsin Colby, Wis. FDIC FDIC-09-748b Feb. 16
The Community’s Bank Bridgeport, Conn. FDIC FDIC-09-744b Feb. 17
Community South Bank and Trust Easley, S.C. FDIC FDIC-09-698b Feb. 26
Cornerstone Bank Wilson, N.C. FDIC FDIC-09-71 Feb. 11
Elkhart Community Bank Elkhart, Ind. FDIC FDIC-09-297b Feb. 18
Evansville Commerce Bank Evansville, Ind. FDIC FDIC-09-692b Feb. 18
Fidelity Bank Dearborn, Mich. FDIC FDIC-09-422b Feb. 12
Finance Factors, Limited Honolulu FDIC FDIC-10-083b Feb. 26
First Central Savings Bank Glen Cove, N.Y. FDIC FDIC-09-702b, FDIC-09-701k Feb. 17
Golden Coast Bank Long Beach, Calif. FDIC FDIC-10-094b Feb. 12
Goshen Community Bank Goshen, Ind. FDIC FDIC-09-296b Feb. 24
Haven Trust Bank Florida Ponte Vedra Beach, Fla. FDIC FDIC-09-623b Feb. 17
Idaho First Bank McCall, Idaho FDIC FDIC-09-630b Feb. 10
Lakeview Bank Lakeville, Mich. FDIC FDIC-09-626b Feb. 5
Macatawa Bank Holland, Mich. FDIC FDIC-09-705b Feb. 22
Mile High Banks Longmont, Colo. FDIC FDIC-09-552b Feb. 5
Mohave State Bank Lake Havasu City, Ariz. FDIC FDIC-10-033b Feb. 8
Mountain 1st Bank & Trust Co. Hendersonville, N.C. FDIC FDIC-09-679b Feb. 25
New Century Bank Chicago FDIC FDIC-09-348b Feb. 19
Peoples State Bank Jeffersonville, Ga. FDIC FDIC-09-694b Feb. 18
Quoin Financial Bank Miller, S.D. FDIC FDIC-10-027b Feb. 26
Sunrise Bank of Albuquerque Albuquerque, N.M. FDIC FDIC-09-523b Feb. 17
Sunrise Bank of Atlanta Atlanta FDIC FDIC-09-696b Feb. 18
Towne Bank of Arizona Mesa, Ariz. FDIC FDIC-10-032b Feb. 2
Treaty Oak Bank Austin, Texas FDIC FDIC-09-684b Feb. 17
The Village Bank St. George, Utah FDIC FDIC-10-055b Feb. 19

The FDIC announced it terminated cease-and-desist orders against Arrowhead Community Bank in Glendale, Ariz.; Mesa Bank in Mesa, Ariz.; Premier American Bank, Miami, Fla; Community Bank & Trust, Cornelia, Ga.; Nuestro Banco, Raleigh, N.C.; and Citizens Bank in New Tazewell, Tenn.

The Federal Reserve Board reported that formal agreements were recently reached with the following institutions. Formal agreements often required the impacted institution to conserve capital, sometimes make changes to management and improve underwriting standards and procedures.

Formal Agreements

Company Location Regulator Order/Docket No. Date
Anchor Commercial Bank Juno Beach, Fla. Federal Reserve Bank of Atlanta, State of Florida, Office of Financial Regulation 10-37-WA/RB-SM, OFR Administrative File No. 0719-FI-02/10 March 16
Coconut Grove Bank Miami Federal Reserve Bank of Atlanta, State of Florida, Office of Financial Regulation 10-010-WA/RB-SM, OFR Administrative File No. 0720-FI-02/10 March 17
Granvalor Holding, Ltd., International Bancorp of Miami Inc. Tortola, British Virgin Islands and Coral Gables, Fla. Federal Reserve Bank of Atlanta 10-004-WA/RB-HC March 22
Royal Bancshares of Pennsylvania Inc. Narberth, Pa. Federal Reserve Bank of Philadelphia 10-022-WA/RB-HC March 17
United Security Bancshares Inc., United Security Bank Fresno, Calif. Federal Reserve Bank of San Francisco 10-025-WA/RB-HC, 10-025-WA/RB-SM March 23

Institutions that are listed in the following table faced FDIC final orders – civil money penalties last month.

Civil Money Penalties

Company Location Regulator Order/Docket No. Amount Date
Bank of the West [Formerly Commercial Federal Bank, Omaha, Nebraska] and Farmers Trust Savings Bank against Kenneth D. Waite San Francisco; Earling, Iowa FDIC FDIC-09-396e, FDIC-09-397k $40,000 Feb. 17
The Bank of the West Thomas, Okla. FDIC FDIC-09-429k $2,310 Feb. 22
The Black Earth State Bank Black Earth, Wis. FDIC FDIC-09-499k $2,500 Feb. 4
Christiana Bank & Trust Co. Greenville, Del. FDIC FDIC-09-710k 5,500 Feb. 2
Citizens State Bank Jasper, Tenn. FDIC FDIC-09-669k $2,000 Feb. 22
Community Bank Raceland, La. FDIC FDIC-09-737k 9,500 Feb. 22
Community State Bank Saint Charles, Mich. FDIC FDIC-08-020k $2,050 Feb. 12
Dakota County State Bank South Sioux City, Neb. FDIC FDIC-09-756k $1,500 Feb. 5
The Dime Bank Honesdale, Pa. FDIC FDIC-10-056k $3,000 Feb. 22
First Central Savings Bank Glen Cove, N.Y. FDIC FDIC-09-702b; FDIC-09-701k $100,000 Feb. 17
First & Peoples Bank Russell, Ky. FDIC FDIC-09-459k $3,450 Feb. 11
S&T Bank Indiana, Pa. FDIC FDIC-10-050k $32,640 Feb. 22
USA Bank against Louis G. Cornacchia Port Chester, N.Y. FDIC FDIC-08-076k $500 Feb. 2

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

Removal / Prohibition Orders

Employer Individual Location Regulator Order # Date
Bank of Alameda Sou, Sokvoeun Alameda, Calif. FDIC FDIC-09-334e Feb. 25
Bank of the West [Formerly Commercial Federal Bank, Omaha, Nebraska] and Farmers Trust Savings Bank Waite, Kenneth D. San Francisco; Earling, Iowa FDIC FDIC-09-396e, FDIC-09-397k Feb. 17
Community Bank-Wheaton/Glen Ellyn Flanagan, Heidi W. Glenn Ellyn, Ill. FDIC FDIC-06-113e Feb. 17

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
AmericanFirst Bank Clermont, Fla. FDIC FDIC-10-071PCAS Feb. 5
AmericanWest Bank Spokane, Wash. FDIC FDIC-10-148PCAS Feb. 24
High Desert State Bank Albuquerque, N.M. FDIC FDIC-10-017PCAS Feb. 3
Tamalpais Bank San Rafael, Calif. FDIC FDIC-10-134PCAS Feb. 19
Ventura County Business Bank Oxnard, Calif. FDIC FDIC-10-092PCAS Feb. 5


A notice of intention to prohibit from further participation, notice of assessment of civil money penalties, findings of fact, conclusions of law, order to pay and notice of hearing were issued against Miami Valley Bank in Lakeview, Ohio. (orders No. FDIC-09-545e and FDIC-09-547k issued on Feb. 26)

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