FDIC Releases September Enforcement Actions

M&A

BancorpSouth Getting Closer to BSA Compliance, Return to M&A

The Mississippi company withdrew two merger applications in August after the FDIC targeted its Bank Secrecy Act compliance. Management says it has made significant progress and is looking forward to a follow-up exam early next year.

By Paul Davis

October 21
Community banking

BancorpSouth Hit with Consent Order for BSA, Patriot Act Issues

BancorpSouth in Tupelo, Miss., has been hit with a consent order tied to compliance weaknesses tied to the Bank Secrecy Act and the Patriot Act.

By Paul Davis

September 5
M&A

BancorpSouth Withdraws Merger Applications Following BSA Scrutiny

BancorpSouth has withdrawn applications for two planned acquisitions after the Tupelo, Miss., company drew regulatory scrutiny for its Bank Secrecy Act compliance.

By Kristin Broughton

August 6

The Federal Deposit Insurance Corp. on Friday released its list of enforcement actions from September, including a consent order that played a role in derailing two planned acquisitions.

BancorpSouth Bank in Tupelo, Miss., was hit with a consent order over its anti-money-laundering procedures. The $13 billion-asset BancorpSouth disclosed the order last month in a filing Securities and Exchange Commission. In August, it withdrew its applications to acquire Ouachita Bancshares in Monroe, La., and Central Community Corp., in Temple, Texas, after the Federal Reserve Board said it would not consider approving the deals until the company addressed a BSA issue flagged by the FDIC.

The FDIC order calls for BancorpSouth to bulk up the team that oversees the monitoring of the Bank Secrecy Act requirements, including the hiring a compliance officer. The agency also directed the bank to submit plan for detecting suspicious activity in transactions and deposits made between June 6, 2013 and May 31, 2014.

BancorpSouth executives said recently they believe the company is about 80% done with completing the tasks laid out in the order.

The FDIC also issued a consent order against Proficio Bank in Cottonwood Heights, Utah. Under the agreement, the $199 million-asset bank is required to maintain Tier 1 capital of at least 12% and total risk-based capital of at least 15%. It must also conduct a comprehensive review of its subsidiary, Proficio Mortgage Venture.

Additionally, the FDIC ordered Thrivent Trust in Appleton, Wis., to pay a $300 civil money penalty. Thrivent has $10 million in assets.

Consent orders were terminated for the following banks: Lonestar Bank in Houston; New Millennium Bank, New Brunswick, N.J.; Bank of Kaukauna in Kaukauna, Wis.; Decatur State Bank in Decatur, Wis.; River City Bank in Sacramento; Banks of Wisconsin in Kenosha, Wis.; Hantz Bank in Southfield, Mich.; United Central Bank in Garland, Texas.

The FDIC terminated prompt corrective action directives against the Bank of Wausau in Wisconsin and the Banks of Wisconsin.

The agency also terminated deposit insurance for Flint River National Bank in Camilla, Ga., because the bank no longer receives deposits.

Kristin Broughton

twitter