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The Federal Deposit Insurance Corp. took regulatory actions against nine banks and freed 22 banks from orders in July, according to an enforcement update released Friday.
August 30 -
The Federal Deposit Insurance Corp. took regulatory actions against nine banks and freed 22 banks from orders in July, according to an enforcement update released Friday.
August 30 -
The two U.S. bank subsidiaries of The Royal Bank of Scotland Group were hit with regulatory fines totaling nearly $14 million on Tuesday for what authorities called misleading marketing of their overdraft protection programs.
April 30 -
Enforcement actions relating to anti-money laundering rules and the Bank Secrecy Act were a prominent theme in the Office of the Comptroller of the Currency's monthly round-up of orders issued from late August through September.
October 18
The Federal Deposit Insurance Corp. took action against 10 banks in September and released 13 from enforcement actions.
Magnolia State Bank in Bay Springs, Miss., was hit with a consent order that requires the $298 million-asset company to step up compliance with the Bank Secrecy Act. Magnolia must form a compliance committee, appoint a BSA officer, develop a BSA compliance plan, bolster its suspicious activity monitoring and customer due diligence programs and review deposit account and transaction activity since August 2011.
Community First Bank in Somerset, N.J., also received a consent order related to weaknesses in its compliance with the Bank Secrecy Act. The $85 million-asset Community First must increase board supervision, develop a written BSA compliance program, revise internal controls, appoint a BSA officer, review its loan policies, provide an adequate allowance for loan and lease losses and develop a strategic plan for information technology, among other requirements.
The West Michigan Savings Bank in Bangor, Mich., was ordered to maintain a Tier 1 leverage ratio of at least 9% and a total risk-based capital ratio of at least 12%. The consent order against the $39 million-asset West Michigan Savings also included instructions to reduce delinquent loans and classified assets, improve its loan grading and review procedures, assess management needs and develop profit and strategic plans.
The $113 million-asset Benchmark Bank in Gahanna, Ohio, was issued a modified consent order. It must maintain a Tier 1 leverage ratio of at least 9% and a total risk-based capital ratio of at least 13%, charge off losses, refrain from extending credit to borrowers with troubled loans, reduce delinquencies and create a profit and strategic plan.
The FDIC also issued a prompt corrective action against the significantly undercapitalized First Community Bank of Crawford County in Van Buren, Ark. The $74 million-asset First Community must take steps to increase its 3.39% Tier 1 leverage ratio and 5.95% total risk-based capital ratio within 45 days, according to the action. If the bank does not increase capital, it must make plans to sell itself or merge with another institution.
Regulators issued five civil money penalties against financial institutions.
The $1.2 billion-asset River City Bank in Sacramento, Calif., was ordered to pay $175,000 to the Treasury for failing to properly comply with the overdraft rules issued by the Federal Reserve in 2010. The rules prevent banks from assessing overdraft fees unless customers have actively opted into an overdraft program. River City must also set aside at least $1.2 million to provide restitution to eligible customers, conduct an independent audit to ensure compliance with customer protection laws, increase board oversight and retain an independent certified account firm.
The other four civil money penalties levied against lenders all concerned violations of the Flood Disaster Protection Act. River Bank in Stoddard, Wis., was ordered to pay $47,500. Ohnward Bank & Trust in Cascade, Iowa, was ordered to pay $18,040. Central Bank Illinois in Geneseo, Ill., faced a penalty of $13,800. Gunnison Savings and Loan Association in Gunnison, Colo., was ordered to pay $2,925.
Thirteen banks were freed from enforcement actions. They are: The Community's Bank in Bridgeport, Conn.; Bank of Wausau in Wisconsin.; Seattle Bank in Seattle; First Enterprise Bank in Oklahoma City; First Community Bank in Santa Rosa, Calif.; Bank of Idaho in Idaho Falls; Prairie Mountain Bank in Great Falls, Mont.; Legacy Bank in Wiley, Colo.; 1st Commerce Bank in Las Vegas; Foundations Bank in Pewaukee, Wis.; Omaha State Bank in Nebraska.; State Bank of Georgia in Fayetteville; and Meramec Valley Bank in Valley Park, Mo.
