Bad Bank List Growing

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MORTGAGE EXPERT
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Federal banking and credit union regulators recently doled out nearly 60 regulatory orders. More than a third of the orders require the institutions to improve capital, operations, management or all of the above.

 

During the past three months, the Office of the Comptroller of the Currency handed out the following 18 cease-and-desist orders. Bank failures are often preceded by cease-and-desist orders.

Cease-and-Desist Orders

Company Location Regulator Order/Docket No. Date
Academy Bank, National Association Colorado Springs, Colo. OCC 2010-095 May 11
Armed Forces Bank, National Association Ft. Leavenworth, Kan. OCC 2010-100 May 11
Bank Midwest, National Association Kansas City, Mo. OCC 2010-104 May 11
Brazos Valley Bank, National Association College Station, Texas OCC 2010-131 May 27
Cadence Bank, National Association Starkville, Miss. OCC 2010-103 May 19
Charter National Bank and Trust Hoffman Estates, Ill. OCC 2010-099 April 29
First National Bank Rosedale, Miss. OCC 2010-102 May 12
The First National Bank of Logan against Timothy J. Lapke Logan, Iowa OCC 2010-112 May 17
The First National Bank of Ordway Ordway, Colo. OCC 2010-096 April 21
FSGBank, National Association Chattanooga, Tenn. OCC 2010-106 April 28
Goldwater Bank, National Association Scottsdale, Ariz. OCC 2010-092 May 11
Mission Oaks National Bank Temecula, Calif. OCC 2010-094 May 12
Pacific Capital Bank, National Association Santa Barbara, Calif. OCC 2010-093 May 11
Rosemount National Bank Rosemount, Minn. OCC 2010-101 April 28
Security Bank, National Association North Lauderdale, Fla. OCC 2010-097 May 19
Southern Commerce Bank, National Association Tampa, Fla. OCC 2010-098 May 11
Sunbank, National Association Phoenix OCC 2010-091 May 11
Valley National Bank Espanola, N.M. OCC 2010-105 May 5

Financial institutions that face formal agreements are often required to conserve or raise capital, improve operations and, sometimes, replace executives. The Fed, the National Credit Union Administration and the OCC reached formal agreements with the following 21 institutions.

Formal Agreements

Company Location Regulator Order/Docket No. Date
Armed Forces Bank of California, National Association San Diego OCC 2010-120 May 11
Beach Community Bancshares Inc. Fort Walton Beach, Fla. Federal Reserve Bank of Atlanta 10-039-WA/RB-HC June 1
Castle Rock Bank Castle Rock, Colo. Federal Reserve Bank of Kansas City, State of Colorado Division of Banking 10-090 -WA/RB-SM May 25
Citizens Bank, National Association Fort Scott, Kan. OCC 2010-124 April 28
Cornerstone National Bank Easley, S.C. OCC 2010-127 May 12
Dearborn Bancorp Inc. Dearborn, Mich. Federal Reserve Bank of Chicago 10- 097-WA/RB-HC June 15
First National Bank of Kansas Burlington, Kan. OCC 2010-123 May 27
Hampton Roads Bankshares Inc., Bank of Hampton Roads Norfolk, Va. Federal Reserve Bank of Richmond, Virginia Bureau of Financial Institutions 10-073-WA/RB-HC, 10-073-WA/RB-SM June 9
Herald National Bank New York OCC 2010-126 April 22
Lincoln County Bancorp, Peoples Bank and Trust Co Troy, Mich. Federal Reserve Bank of St. Louis 10-095 -WA/RB-HC, 10-095- WA/RB-SM June 14
Mid State Banks Inc. Hawkinsville, Ga. Federal Reserve Bank of Atlanta, State of Georgia Department of Banking and Finance 10-079-WA/RB-HC June 2
Patriot National Bancorp Inc. Stamford, Conn. Federal Reserve Bank of New York 10-085-WA/RB-HC June 2
Patterson Bankshares Inc. Patterson, Ga. Federal Reserve Bank of Atlanta, State of Georgia Department of Banking and Finance 10-106-WA/RB-HC June 1
PremierWest Bancorp Medford, Ore. Federal Reserve Bank of San Francisco; Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities 10-088-WA/RB-HC June 4
Saigon National Bank Westminster, Calif. OCC 2010-121 May 13
Seaside National Bank & Trust Orlando, Fla. OCC 2010-122 May 3
SouthwestUSA Corp. Las Vegas Federal Reserve Bank of San Francisco 10-107-WA/RB-HC June 2
Southwestern National Bank Houston OCC 2010-128 May 19
Sperry Associates Federal Credit Union Garden City Park, N.Y. NCUA na June 11
Sun National Bank Vineland, N.J. OCC 2010-125 April 15
Village Bancorp St. George, Utah Federal Reserve Bank of San Francisco 10-111-WA/RB-HC June 2

The OCC reported that formal agreements were terminated with Cadence Bank, National Association; Mission Oaks National Bank; Standing Stone National Bank; and Valley National Bank.

Civil Money Penalties

Company Individual Location Regulator Order/Docket No. Amount Date
City National Bank na Los Angeles OCC 2010-107 na May 3
The First National Bank of Logan Hartwig, Christopher R. Logan, Iowa OCC 2010-110 na May 17
The First National Bank of Logan Lapke, John Logan, Iowa OCC 2010-111 na May 17
The First National Bank of Logan Lapke, Timothy J. Logan, Iowa OCC 2010-112 na May 17
First National Bank of The Rockies Penny, Bruce Grand Junction, Colo. OCC 2010-108 na May 6
First National Bank of The Rockies Waller, Peter Grand Junction, Colo. OCC 2010-109 na May 6
Great Plains National Bank na Elk City, Okla. OCC 2010-113 na May 10
Monarch Bank na Chesapeake, Va. Fed 10-104-CMP-SM $7,215 June 11
The National Bank of Malvern Aller, Jamie Bartholomew Malvern, Pa. OCC 2010-114 na May 28
The National Bank of Malvern Bartholomew, Andrew Malvern, Pa. OCC 2010-115 na May 28
The National Bank of Malvern Bartholomew, Lydia Willits Malvern, Pa. OCC 2010-116 na May 28
The National Bank of Malvern Shipp, Barbara Malvern, Pa. OCC 2010-117 na May 28
The National Bank of Malvern Shipp, John Malvern, Pa. OCC 2010-118 na May 28
The National Bank of Malvern Shipp, William L. Malvern, Pa. OCC 2010-119 na May 28

The following three firms faced Fed prompt corrective actions this month.

Prompt Corrective Action Directives

Employer Location Regulator Order/Docket # Date
Metro Bank of Dade County Miami Fed 10-128-PCA-SM June 15
Pierce Commercial Bank Tacoma, Wash. Fed 10-115-PCA-SM June 10
Sterling Bank Lantana, Fla. Fed 10-120-PCA-SM June 10

A capital directive was issued against Native American Bank.

Capital Directives

Company Location Regulator Order # Date
Native American Bank, National Association Denver OCC 2010-090 March 12

A former bank employee and a former credit union employee have been banned from working in the industry.

Removal / Prohibition Orders

Company Individual Location Regulator Order/Docket # Date
The First National Bank of Logan Lapke, John Logan, Iowa OCC 2010-111 May 17
Pioneer Federal Credit Union Law, Tammy Mountain Home, Idaho NCUA 10-0008-R5 March 11

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