88 Bank Orders Issued

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4 · 07 · 11

Bank regulators haven’t let up on the financial institutions they oversee — with 88 new regulatory orders identified during the past month.

Regulatory actions or terminations thereof, against financial institutions or their employees, saw a slight decline to 88 over last month’s report. Cease-and-desist activity was steady, while civil money penalties took a 50 percent decline.

The Federal Deposit Insurance Corp. processed 60 matters during February, a decline of one from 61 matters reported a month earlier. A slight decrease was also noted when compared to 64 matters reported in February 2010.

The FDIC and Office of the Comptroller of the Currency together issued 27 cease-and-desist or consent orders. That number has remained constant for three consecutive months.

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
Bank of George Las Vegas, NV FDIC FDIC-10-940b 2/1/2011
Bank of Palatine Palatine, IL FDIC FDIC-10-780b 2/10/2011
Bluegrass Community Bank Danville, KY FDIC FDIC-10-279b 2/15/2011
Bridgeview Bank Group Bridgeview, IL FDIC FDIC-10-853b 2/10/2011
Brighton Bank Brighton, TN FDIC FDIC-10-515b 2/23/2011
Citizens Bank of Spencer, Tenn. Spencer, TN FDIC FDIC-10-651b 1/28/2011
Citizens State Bank Somerville, TX FDIC FDIC-10-962b 2/15/2011
Coast National Bank San Luis Obispo, California OCC 2011-011 2/9/2011
Columbia Savings Bank Cincinnati, OH FDIC FDIC-10-958b 2/24/2011
Community Bank-Wheaton/Glen Ellyn Glen Ellyn, IL FDIC FDIC-10-713b 2/7/2011
Country Bank Aledo, IL FDIC FDIC-10-864b 2/3/2011
F & M Bank and Trust Company Manchester, GA FDIC FDIC-10-873b 2/4/2011
First Financial Bank Bessemer, AL FDIC FDIC-10-831b 2/17/2011
First National Bank Edinburg, Texas OCC 2011-012 2/8/2011
Georgia Banking Company Atlanta, GA FDIC FDIC-10-490b 2/1/2011
Home Bank of Arkansas Portland, AR FDIC FDIC-10-805b 2/22/2011
Horry County State Bank Loris, SC FDIC FDIC-10-822b 2/10/2011
New City Bank Chicago, IL FDIC FDIC-11-033b 2/24/2011
Northern Star Bank Mankato, MN FDIC FDIC-10-738b 2/28/2011
Open Bank Los Angeles, CA FDIC FDIC-11-062b 2/16/2011
Reliance Bank Des Peres, MO FDIC FDIC-10-947b 2/14/2011
Peoples National Bank – Eric Anderson Colorado Springs, Colorado OCC 2011-017 2/2/2011
Savings Bank of Mendocino County Ukiah, CA FDIC FDIC-10-887b 2/4/2011
South County Bank, National Association Rancho Santa Margarita, California OCC 2011-010 1/24/2011
Southern Community Bank and Trust Winston-Salem, NC FDIC FDIC-10-823b 2/25/2011
State Bank Wonder Lake, IL FDIC FDIC-10-821b 2/7/2011
Worlds Foremost Bank Sidney, Nebraska FDIC FDIC-10-775b, FDIC-10-777k 1/31/2011

The FDIC terminated cease-and-desist orders against 10 institutions during February.

Order Terminating a Cease-and-Desist Order

Company Location Regulator Order/Docket No. Date
American Trust Bank Roswell, GA FDIC FDIC-09-301b 2/22/2011
Columbia Savings Bank Cincinnati, OH FDIC FDIC-07-183b 2/24/2011
Community State Bank Austin, TX FDIC FDIC-10-494b 2/24/2011
Communitysouth Bank and Trust Easley, SC FDIC FDIC-09-698b 2/24/2011
First Bank Williamstown, NJ FDIC FDIC-09-378b 1/28/2011
The Felton Bank Felton, DE FDIC FDIC-09-432b 2/10/2011
Treaty Oak Bank Austin, TX FDIC FDIC-09-684b 2/24/2011
West Michigan Community Bank Hudsonville, MI FDIC FDIC-08-238b 2/10/2011
Americanfirst Bank Clermont, FL FDIC FDIC-10-071PCAS 2/18/2011
Seattle Bank Seattle, WA FDIC FDIC-11-006PCAS 2/22/2011

The OCC, Federal Reserve and multiple state banking regulators recently entered formal agreements with 13 institutions. Such agreements often require the conservation of capital, operational improvements and, occasionally, management changes.

Formal Agreements

Company Location Regulator Order/Docket No. Date
Canyon Community Bank, National Association Tucson, Arizona OCC 2011-013 1/27/2011
Farmers and Merchants Bancshares, Inc. Burlington, Iowa Federal Reserve Bank of Chicago 11-023-WA/RB-HC 2/28/2011
First American International Corporation Brooklyn, New York Federal Reserve Bank of New York 11-036-WA/RB-HC 3/18/2011
First Financial Holding Co., Ltd., First Commercial Bank, Ltd. and First Commercial Bank Los Angeles Branch Taipei, Taiwan and Los Angeles, California Federal Reserve Bank of San Francisco, State of California Department of Financial Institutions 11-019-WA/RB-FH, 11-019-WA/RB-FB, 11-019-WA/RB-FBR 3/28/2011
Florida Bank Group, Inc., Florida Bank Tampa, Florida Federal Reserve Bank of Atlanta 11-012-WA/RB-HC, 11-012-WA/RB-SM 3/1/2011
Northern States Financial Corporation Waukegan, Illinois Federal Reserve Bank of Chicago 11-032-WA /RB-HC 3/17/2011
Rosholt Bancorporation, Inc. Rosholt, Wisconsin Federal Reserve Bank of Chicago 11-005-WA/RB-HC 3/1/2011
Stark Bank Group, Ltd. and First American Bank Fort Dodge, Iowa Federal Reserve Bank of Chicago 11-008-WA/RB-HC, 11-008-WA/RB-SM 3/3/2011
The First National Bank of Frederick Frederick, South Dakota OCC 2010-266 12/16/2010
The First National Bank of Southern Kansas Mount Hope, Kansas OCC 2011-015 2/17/2011
The Midland National Bank of Newton Newton, Kansas OCC 2011-016 2/3/2011
The National Bank Moline, Illinois OCC 2011-014 1/26/2011
Tidelands Bancshares, Inc. Mount Pleasant, South Carolina Federal Reserve Bank of Richmond 11-022-WA/RB-HC 3/18/2011

The FDIC and National Credit Union Administration banned nine 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
Community Bank & Trust Cornelia, GA Robert R. Jones FDIC na FDIC-09-754e 2/24/2011
Farmers State Bank of Danforth Danforth, IL Gerry L. Lunt FDIC na FDIC-10-218e 2/24/2011
Security Pacific Bank Los Angeles, CA Julia L. Wiley FDIC na FDIC-10-797e 2/24/2011
The Bank of Commerce Ammon, ID Steven E. Worton FDIC na FDIC-10-726e; FDIC-10-727k 2/17/2011
The Provident Bank Jersey City, NJ Rena Logan FDIC na FDIC-10-868e 2/24/2011
United Savings Bank Philadelphia, PA Katherine Harrell FDIC na FDIC-10-740e 2/17/2011
na na Gary K. Ellis NCUA na 11-0003-R3 1/24/2011
na na Kathleen Hammer NCUA na 11-0001-R3 2/4/2011
na na Virginia Anderson NCUA na 11-0002-R4 12/8/2010

Civil Money Penalties were issued against 16 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
Artisans’ Bank Wilmington, DE na FDIC $4,000.00 FDIC-10-753k 2/7/2011
Bank of Cave City Cave City, AR na FDIC $2,310.00 FDIC-10-841k 2/17/2011
Citizens Bank & Trust Company Atwood, TN na FDIC $100.00 FDIC-11-037OA 2/16/2011
Diamond Bank Murfreesboro, AR na FDIC $7,000.00 FDIC-10-960k 2/24/2011
Excel Bank Sedalia, MO na FDIC $12,000.00 FDIC-10-881k 2/10/2011
Excel Bank Sedalia, MO na FDIC $7,500.00 FDIC-10-882k 2/9/2011
Farmers State Bank of Danforth Danforth, IL Gerry L. Lunt FDIC $5,000.00 FDIC-10-886k 2/24/2011
Fox River State Bank Burlington, WI na FDIC $5,050.00 FDIC-10-761k 2/17/2011
Integrity Bank Camp Hill, PA na FDIC $9,000.00 FDIC-10-755k 2/1/2011
Nekoosa Port Edwards State Bank Nekoosa, WI na FDIC $3,700.00 FDIC-10-920k 2/15/2011
Pacific National Bank Miami, Florida na OCC $7,000,000 NR 2011-32 3/24/2011
Peoples National Bank Colorado Springs, Colorado Eric Anderson OCC na 2011-017 2/2/2011
Suncrest Bank Visalia, CA FDIC $3,400.00 FDIC-11-073k 2/23/2011
The Bank of Commerce Ammon, ID Steven E. Worton FDIC $10,000.00 FDIC-10-726e; FDIC-10-727k 2/17/2011
The First National Bank of Wellston Wellston, Ohio na OCC na 2011-018 1/28/2011
VIST Bank Wyomissing, PA na FDIC $9,000.00 FDIC-10-754k 1/28/2011

Prompt Corrective Actions were issued against seven companies by the FDIC. 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
Bank of Las Vegas Las Vegas, NV FDIC FDIC-11-015PCAS 2/22/2011
Central Arizona Bank Casa Grande, AZ FDIC FDIC-11-011PCAS 2/22/2011
First Heritage Bank Snohomish, WA FDIC FDIC-11-111PCAS 2/24/2011
Michigan Commerce Bank Ann Arbor, MI FDIC FDIC-11-014PCAS 2/22/2011
Summit Bank Prescott, AZ FDIC FDIC-11-063PCAS 2/10/2011
Sunrise Bank of Arizona Phoenix, AZ FDIC FDIC-11-010PCAS 2/22/2011
The Village Bank Saint George, UT FDIC FDIC-11-110PCAS 2/22/2011

An order terminating supervisory prompt corrective action directive was issued for Americanfirst Bank in Clermont, Fla. and Seattle Bank in Seattle, Wash.

Terminations of Existing Enforcement Actions

Company Location Regulator Order/Docket No. Date
Coast National Bank San Luis Obispo, California OCC 2011-011, EA# 2009-018 2/9/2011
Community National Bank Waterloo, Iowa OCC 2011-019, EA# 2010-026 2/8/2011
Lakewood Bank, National Association Baxter, Minnesota OCC 2011-020, EA# 2010-054 2/1/2011

A Final Order Section 19 was issued against Luis Oscar Sanchez.

An amended notice of Charges and Hearing was issued to Pacific Rim Bank in Honolulu, Hawaii on Feb. 3.

The FDIC scheduled an administrative hearing at its Dallas regional office for Parson, Tenn.-based Community South Bank on April 11.

The OCC scheduled an administrative hearing for former Wachovia employee, Colleen Adams, on April 5.


Mortgage Daily Staff


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