The FDIC issued 57 enforcement actions against banks in December 2011, down from 72 in November.
The December enforcement actions included 9 consent orders, 19 civil money penalties, 4 prompt corrective actions, 3 voluntary terminations of insurance, 12 removal and prohibition orders and 10 orders terminating previous consent orders and cease and desist orders.
A consent order is a formal enforcement action issued by regulators to a bank. The bank is required by the consent order to stop unsafe or unsound practices. Once a bank materially complies with the consent order, the regulatory order may be terminated.
Far more serious than a consent order is a prompt corrective action notice (PCA) under which a bank is required to take immediate action to return to “minimum capital standards”. Generally, a bank that is issued a PCA is considered to be operating in “an unsafe and unsound condition”. An institution receiving a prompt corrective action is considered to be undercapitalized, significantly undercapitalized or critically undercapitalized.
It is highly likely that banks receiving a consent order or prompt corrective action are on the FDIC confidential problem bank list. Statistics from the FDIC’s last Quarterly Banking Profile show that almost 12% of all banks are on the Problem Bank List. The number of banks currently considered to be problem banks is 844 at September 30, 2011, compared to 865 in the previous quarter.
Listed below are the enforcement actions taken by the FDIC for December 2011.
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)Source
(Cease-and-Desist)
Chambers Bank, Danville, AR; FDIC-11-597b; Issued 12/21/11 – PDF
Colorado East Bank & Trust, Lamar, CO; FDIC-11-522b; Issued 12/1/11 – PDF
First Bank of Delaware, Wilmington, DE; FDIC-11-669b; Issued 12/29/11 – PDF
SouthernTrust Bank, Goreville, IL; FDIC-11-507b; Issued 12/13/11 – PDF
Republic Bank & Trust Company, Louisville, KY; FDIC-10-079b; FDIC-10-216k; in the amount of $900,000.00; Issued 12/8/11 – PDF
United Bank and Trust Company, Versailles, KY; FDIC-11-609b; Issued 12/16/11 – PDF
American Gateway Bank, Port Allen, LA; FDIC-11-607b; Issued 12/21/11 – PDF
Woodland Bank, Deer River, MN; FDIC-11-516b; Issued 12/19/11 – PDF
Pacific International Bank, Seattle, WA; FDIC-11-670b; Issued 12/2/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(e), 12 U.S.C. § 1818(e)
(Removal and Prohibition Orders)
Premier Business Bank, Los Angeles, CA; FDIC-11-600e; FDIC-11-601k; against David Y. Lee in the amount of $75,000.00; Issued 12/19/11 – PDF
Citizens Bank and Trust of West Georgia, Carrollton, GA; FDIC-10-701e; FDIC-10-702k; against Connie F. Greene in the amount of $10,000.00; Issued 12/20/11 – PDF
Appalachian Community Bank, Ellijay, GA; FDIC-11-579e; against Tracy R. Newton; Issued 12/20/11 – PDF
Hancock Bank, Gulfport, MS; FDIC-10-851e; against Lisa A. Brooks; Issued 12/20/11 – PDF
Bank of Dwight, Dwight, IL; NKA Bank of Pontiac, Pontiac, IL; FDIC-10-442e; against Kelly D. Klingler; Issued 12/20/11 – PDF
Silver State Bank, Henderson, NV; FDIC-11-605e; FDIC-11-606k; against Gary A. Gardner in the amount of $1,000.00; Issued 12/20/11 – PDF
Branch Banking and Trust Company, Winston-Salem, NC; FDIC-09-241e; against Bonnie Jean Bain; Issued 12/20/11 – PDF
Metropolitan Savings Bank, Pittsburgh, PA; FDIC-11-293e; against Donna Shebetich; Issued 12/6/11 – PDF
South Carolina Community Bank, Columbia, SC; FDIC-11-030e; against Torlando Ramont Childress; Issued 12/6/11 – PDF
Community South Bank, Parsons, TN; FDIC-11-050e; against Jeffrey L. Phillips; Issued 12/20/11 – PDF
Commercial State Bank, Andrews, TX; FDIC-10-665e; against Richard Shay Wallace; Issued 12/20/11 – PDF
Sterling Bank, Houston, TX; FDIC-09-360e; against Kim L. Arnold; Issued 12/6/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(i), 12 U.S.C. § 1818(i)
(Civil Money Penalties)
Premier Business Bank, Los Angeles, CA; FDIC-11-600e; FDIC-11-601k; Order of Removal From Office and Prohibition From Further Participation and Order to Pay against David Y. Lee in the amount of $75,000.00; Issued 12/19/11 – PDF
Bank of the West, San Francisco CA; FDIC-11-662k; in the amount of $135,000.00; Issued 12/22/11 – PDF
Premier Community Bank of the Emerald Coast, Crestview, FL; FDIC-11-525k; in the amount of $5,000.00; Issued 12/5/11 – PDF
Citizens Bank and Trust of West Georgia, Carrollton, GA; FDIC-10-701e; FDIC-10-702k; Order of Prohibition From Further Participation and Order to Pay against Connie F. Greene in the amount of $10,000.00; Issued 12/20/11 – PDF
FirstSecure Bank and Trust Co., Palos Hills, IL; FDIC-11-172k; in the amount of $3,000.00; Issued 12/30/11 – PDF
The Peoples Bank, Pratt, KS; FDIC-11-672k; in the amount of $3,270.00; Issued 12/27/11 – PDF
Republic Bank & Trust Company, Louisville, KY; FDIC-10-079b; FDIC-10-216k; Consent Order; Order to Pay; and Order Terminating Order to Cease and Desist in the amount of $900,000.00; Issued 12/8/11 – PDF
East Boston Savings Bank, Boston, MA; FDIC-11-558k; in the amount of $35,000.00; Issued 12/13/11 – PDF
First Independence Bank, Detroit, MI; FDIC-11-453k; in the amount of $4,000.00; Issued 12/7/11 – PDF
Silver State Bank, Henderson, NV; FDIC-11-605e; FDIC-11-606k; Order of Prohibition From Further Participation and Order to Pay against Gary A. Gardner in the amount of $1,000.00; Issued 12/20/11 – PDF
First Trust and Savings Bank, Oneida, TN; FDIC-11-282k; in the amount of $1,800.00; Issued 12/21/11 – PDF
Commercial State Bank, Andrews, TX; FDIC-11-619k; against Richard Shay Wallace in the amount of $5,000.00; Issued 12/20/11 – PDF
Triumph Savings Bank, SSB, Dallas, TX; FDIC-11-656k; in the amount of $9,825.00; Issued 12/2/11 – PDF
United Central Bank, Garland, TX; FDIC-11-519k; in the amount of $9,850.00; Issued 12/5/11 – PDF
Justin State Bank, Justin, TX; FDIC-11-117k; in the amount of $16,500.00; Issued 12/2/11 – PDF
The Village Bank, Saint George, UT; FDIC-11-604k; in the amount of $3,960.00; Issued 12/21/11 – PDF
Portage County Bank, Almond, WI; FDIC-11-231k; in the amount of $1,200.00; Issued 12/30/11 – PDF
Cleveland State Bank, Cleveland, WI; FDIC-11-162k; in the amount of $5,000.00; Issued 12/30/11 – PDF
First Citizens State Bank, Whitewater, WI; FDIC-11-128k; in the amount of $800.00; Issued 12/30/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. § 1831o
(Prompt Corrective Actions)
Mile High Banks, Longmont, CO; FDIC-11-584PCAS; Issued 12/1/11 – PDF
The First State Bank, Stockbridge, GA; FDIC-11-688PCAS; Issued 12/22/11 – PDF
Waukegan Savings Bank, Waukegan, IL; FDIC-11-610PCAS; Issued 12/14/11 – PDF
Tennessee Commerce Bank, Franklin, TN; FDIC-11-618PCAS; Issued 11/2/11 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(p), 12 U.S.C. § 1818(p)
(Termination of Insurance)
Fireside Bank, Pleasanton, CA; FDIC-11-599p; Issued 12/8/11 – PDF
First Investors Federal Savings Bank, Edison, NJ; FDIC-11-639p; Issued 12/29/11 – PDF
Greystone Bank, Raleigh, NC; FDIC-11-564p; Issued 12/28/11 – PDF
TERMINATIONS
Orders Terminating Consent Orders and Cease and Desist Orders
First Standard Bank, Los Angeles, CA; Now Known As Open Bank, Los Angeles, CA; FDIC-07-273b; Issued 12/29/11 – PDF
First Standard Bank, Los Angeles, CA; Now Known As Open Bank, Los Angeles, CA; FDIC-09-349b; Issued 12/29/11 – PDF
Old Harbor Bank, Clearwater, FL; FDIC-10-463b; Issued 12/9/11 – PDF
Premier Community Bank of the Emerald Coast, Crestview, FL; FDIC-10-648b; Issued 12/22/11 – PDF
AztecAmerica Bank, Berwyn, IL; FDIC-10-129b; Issued 12/30/11 – PDF
First Security Bank & Trust Company, Norton, KS; FDIC-09-616b; Issued 12/5/11 – PDF
United Bank and Trust Company, Versailles, KY; FDIC-09-485b; Issued 12/16/11 – PDF
Citizens Bank & Trust Company, Covington, LA; FDIC-09-503b; Issued 12/14/11 – PDF
Citizens State Bank, New Baltimore, MI; FDIC-09-391b; Issued 12/8/11 – PDF
West One Bank, Kalispell, MO; FDIC-10-592b; Issued 12/16/11 – PDF'
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