Furious Pace of Regulatory Actions Continue

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There were no shortage of regulatory actions against financial institutions over the past month. Officials are meeting this week to discuss regulation of the largest financial services companies.

Tuesday, the Federal Deposit Insurance Corp. will hold a roundtable with government officials, industry executives, academics and investors. The focus of the event will be the new resolution authority provided for the largest financial firms in the Dodd Frank Wall Street Reform and Consumer Protection Act.

Tomorrow’s roundtable is the first in a series of discussions where participation is by invitation only.

Last month, the FDIC said it processed 76 matters, lower than 80 reported for June. During July 2009, 64 matters were processed. Some of those matters were cease-and-desist orders, which often precede a bank failure.

Cease-and-Desist Orders

Company Location Regulator Order/Docket No. Date
1st Commerce Bank North Las Vegas, Nev. FDIC FDIC-09-703b July 13
AztecAmerica Bank Berwyn, Ill. FDIC FDIC-10-441b July 30
Bank of Jackson County Graceville, Fla. FDIC FDIC-10-364b July 27
Barclays Bank PLC London and the bank’s branch in New York Federal Reserve Board, New York State Banking Department 10-165-B-FB, 10-165-B-FBR Aug. 16
Benchmark Bank Gahanna, Ohio FDIC FDIC-10-355b July 30
Cascade Bank Everett, Wash. FDIC FDIC-10-322b July 15
CB&S Bank Inc. Russellville, Ala. FDIC FDIC-10-176b July 8
Citizens Bank of Mukwonago Mukwonago, Wis. FDIC FDIC-10-357b July 30
First Bank and Trust New Orleans, La. FDIC FDIC-10-329b July 9
First Chatham Bank Savannah, Ga. FDIC FDIC-10-177b July 13
First Choice Bank Geneva, Ill. FDIC FDIC-10-311b July 29
Great Eastern Bank of Florida Miami FDIC FDIC-10-365b July 27
Hanover Community Bank Garden City Park, N.Y. FDIC FDIC-10-292b July 27
HarVest Bank of Maryland Rockville, Md. FDIC FDIC-10-349b July 2
Main Street Bank Kingwood, Texas FDIC FDIC-10-321b July 28
Metro United Bank San Diego FDIC FDIC-10-379b July 22
Midwest Community Bank Plainville, Kan. FDIC FDIC-08-373b July 12
Millennium Bank Des Plaines, Ill. FDIC FDIC-10-200b July 20
Monroe Bank & Trust Monroe, Mich. FDIC FDIC-10-163b July 12
Oceanic Bank San Francisco FDIC FDIC-10-362b July 15
Parkway Bank Lenoir, N.C. FDIC FDIC-10-402b July 15
Pinnacle Bank Orange City, Fla. FDIC FDIC-10-184b July 7
Progrowth Bank Nicollet, Minn. FDIC FDIC-10-238b July 1
Riverland Bank Jordan, Minn. FDIC FDIC-10-208b July 1
Security Bank, S.B. Springfield, Ill. FDIC FDIC-10-317b July 20
Security Savings Bank, SSB Southport, N.C. FDIC FDIC-10-330b July 28
Sevier County Bank Sevierville, Tenn. FDIC FDIC-10-150b July 27
Sherburne State Bank Becker, Minn. FDIC FDIC-10-296b July 12
Summit Bank Prescott, Ariz. FDIC FDIC-10-384b July 28
TIB Bank Naples, Fla. FDIC FDIC-10-358b July 2
The Wilton Bank Wilton, Conn. FDIC FDIC-10-375b July 22

The FDIC also issued several orders terminating cease-and-desist orders.

Orders Terminating Cease-and-Desist Orders

Company Location Regulator Order/Docket No. Date
Appalachian Community Bank Ellijay, Ga. FDIC FDIC-09-010b July 27
Darien Rowayton Bank Darien, Conn. FDIC FDIC-09-178b July 15
First Lowndes Bank Fort Deposit, Ala. FDIC FDIC-08-018b July 28
Freedom Bank Bradenton, Fla. FDIC FDIC-08-173b July 28
Independence Bank Newport Beach, Calif. FDIC FDIC-08-037b July 23
Independence Bank Newport Beach, Calif. FDIC FDIC-08-162b July 23
Peninsula Bank Englewood, Fla. FDIC FDIC-09-498b July 13
Satilla Community Bank Saint Marys, Ga. FDIC FDIC-09-147b July 28
West Coast Bank Lake Oswego, Ore. FDIC FDIC-09-453b July 15

Financial institutions that enter formal agreements with their regulators are often required to conserve capital, improve operations and — sometimes — replace management.

Formal Agreements

Company Location Regulator Order/Docket No. Date
Battle Creek State Company Inc., Battle Creek State Bank Battle Creek, Neb. Federal Reserve Bank of Kansas City, Nebraska Department of Banking and Finance 10-151-WA/RB-HC, 10-151-WA/RB-SM Aug. 9
Brand Group Holdings Inc., The Brand Banking Co. Lawrenceville, Ga. Federal Reserve Bank of Atlanta, Banking Commissioner of the State of Georgia 10-160-WA/RB-HC, 10-160-WA/RB-SM Aug. 2
CSRA Bank Corp. Wrens, Ga. Federal Reserve Bank of Atlanta, Banking Commissioner of the State of Georgia 10-176-WA/RB-HC Aug. 19
First Bancshares Inc. of Cold Spring Cold Spring, Minn. Federal Reserve Bank of Minneapolis 10-084-WA/RB-HC Aug. 16
Guaranty Development Co., American Bank Livingston, Mont.; Bozeman, Mont. Federal Reserve Bank of Minneapolis, and the Montana Division of Banking and Financial Institutions 10-072-WA/RB-HC, 10-072-WA/RB-SM Aug. 3
Highland Bancshares Inc. St. Michael, Minn. Federal Reserve Bank of Minneapolis 10-164-WA/RB-HC Aug. 20
MidSouth Bank Murfreesboro, Tenn. Federal Reserve Bank of Atlanta 10-143-WA/RB-SM Aug. 5
UCB Financial Group Inc. Atlanta Federal Reserve Bank of Atlanta, and the Banking Commissioner of the State of Georgia 10-178-WA/RB-HC Aug. 19
Union Bancshares Inc. Marksville, La. Federal Reserve Bank of Atlanta, and the Louisiana Office of Financial Institutions 10-155-WA/RB-HC Aug. 5
Wisconsin Bancshares Inc. Kenosha, Wis. Federal Reserve Bank of Chicago 10-139-WA/RB-HC Aug. 2

The FDIC issued removal-prohibition orders pursuant to Section 8(e), 12 U.S.C. § 1818(e).

Removal / Prohibition Orders

Employer Individual Location Regulator Order # Date
The Bank Jason W. Shaw Woodbury, N.J. FDIC FDIC-09-564e July 21
BankPlus Charles K. Payne Belzoni, Miss. FDIC FDIC-09-040e July 21
Coatesville Savings Bank James D. Ziegler Coatesville, Pa. FDIC FDIC-10-236e July 21
Enterprise Bank and Trust Co. David R. Nolan Lowell, Mass. FDIC FDIC-10-156e July 22
FNBT.COM BANK.COM Rita M. Richardson Fort Walton Beach, Fla. FDIC FDIC-10-110e July 21
First United Bank & Trust Jeremy T. Brooks Oakland, Md. FDIC FDIC-10-237e July 30
First State Bank, Minnesota Gerald A. Payne Le Roy, Minn. FDIC FDIC-09-385e July 21
Gulf Coast Bank and Trust Keith Ann Stopa New Orleans FDIC FDIC-09-433e July 21
Hancock Bank Pamela K. Swilley Gulfport, Miss. FDIC FDIC-09-568e July 30
International Bank of Commerce Norma Vargas Laredo, Texas FDIC FDIC-09-719e July 21
Interstate Bank SSB Kathy Cluck Perryton, Texas FDIC FDIC-09-738e July 22
North Penn Bank Glenn J. Clark Scranton, Pa. FDIC FDIC-10-191e July 30

The FDIC issues final orders, civil money penalties, pursuant to Section 8(i), 12 U.S.C. § 1818(i).

Final Orders – Civil Money Penalties

Company Location Regulator Order/Docket No. Amount Date
AbbyBank Abbotsford, Wis. FDIC FDIC-10-242k $7,000 July 7
AbbyBank Abbotsford, Wis. FDIC FDIC-10-243k $8,500 July 7
Affinity Bank of Pennsylvania Wyomissing, Pa. FDIC FDIC-10-269k $5,500 July 22
Ann Arbor State Bank Ann Arbor, Mich. FDIC FDIC-10-267k $800 July 1
Clayton Bank and Trust Knoxville, Tenn. FDIC FDIC-10-422k $10,000 July 21
Enterprise Bank and Trust Co. Lowell, Mass. FDIC FDIC-10-157k $1,000 July 22
First Southern Bank Columbia, Miss. FDIC FDIC-10-420k $10,000 July 20
First State Bank Minnesota against Gerald A. Payne Le Roy, Minn. FDIC FDIC-09-386k $30,000 July 21
Glennville Bank Glennville, Ga. FDIC FDIC-10-270k $7,000 July 28
Gulf Coast Bank and Trust against Keith Ann Stopa New Orleans FDIC FDIC-09-434k $10,000 July 21
Texas Star Bank Van Alstyne, Texas Federal Reserve Board 10-103-CMP-SM $3.850 Aug. 13
Town Square Bank Inc. Ashland, Ky. FDIC FDIC-10-260k $1,250 July 2
Transportation Alliance Bank Ogden, Utah FDIC FDIC-09-733k $97,500 July 21
Tri-State Bank of Memphis Memphis, Tenn. FDIC FDIC-10-418k $4,000 July 14
Vermillion State Bank Vermillion, Minn. FDIC FDIC-10-113k $9,800 July 21
West Bank West Des Moines, Iowa FDIC FDIC-10-125k $15,500 July 12

Prompt corrective actions were issued by the FDIC pursuant to Section 38, 12 U.S.C. § 1831o.

Final Orders – Prompt Corrective Actions

Company Location Regulator Order/Docket No. Date
Palos Bank and Trust Co. Palos Heights, Ill. FDIC FDIC-10-456PCAS July 14
Paramount Bank Farmington Hills, Mich. Federal Reserve Board 10-158-PCA-SM Aug. 9
Sunrise Bank Cocoa Beach, Fla. Federal Reserve Board 10-181-PCA-SM Aug. 26

FDIC granted final orders pursuant to Section 19, 12 U.S.C. § 1829, which give permission to file an application and approves the application for consent to participate in the affairs of any insured depository institution.

Final Orders – Section 19

Individual Regulator Order/Docket No. Date
Burk, Petra Alexandra FDIC FDIC-10-222L July 28
Garber, Richard Allan FDIC FDIC-10-225L July 13
Haymore, Travis D. FDIC FDIC-10-126L July 27
Smith, Lincoln T. FDIC FDIC-09-661L July 20
Tranetzki Brian FDIC FDIC-10-171L July 28
Woodson, Corey Charles FDIC FDIC-10-283L July 13

An Order Accepting Partial Satisfaction of Cross Guarantee Liability and Conditionally Granting Approval for Waiver of Cross Guarantee Liability (No. FDIC-09-739kk) was issued against The Bank in Weatherford, Texas on July 15 by the FDIC.

A Notice of Intention to Prohibit From Further Participation (order No. FDIC-10-335e) was issued by the FDIC on July 20 against Arlene Shih of Chinatrust Bank (U.S.A.) in Torrance, Calif.

On July 21, Howard R. Palmer of American Bank Center in Dickinson, N.D., was hit with a Notice of Intention to Prohibit From Further Participation and Notice of Assessment of Civil Money Penalty, Findings of Fact and Conclusions of Law, Order to Pay, and Notice of Hearing (No. FDIC-09-205e; FDIC-09-206k).


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