The Federal Deposit Insurance Corp. on Dec. 29 released a list of enforcement actions taken against banks and individuals in November, along with the Oct. 31 termination of PBI Bank Inc.'s consent order. The list includes consent orders filed against South Lafourche Bank & Trust Co. and Bank of Hazlehurst.
No administrative hearings are scheduled for January 2018.
The following list excludes actions that do not meet criteria for S&P Global Market Intelligence's news coverage. Click here to view an Excel template showing our full database of enforcement actions against U.S. banks and thrifts.
The FDIC on Nov. 6 issued a consent order against South Lafourche Bank & Trust, requiring it to charge off or collect all assets classified as a loss following a May examination. The Larose, La.-based bank was also required to make a provision of at least $500,000 to its allowance for loan and lease losses.
South Lafourche was further ordered to reduce the assets classified as substandard or doubtful and to maintain a Tier 1 leverage capital ratio of at least 10% of its average total assets, a Tier 1 risk-based capital ratio of at least 13% of total risk-weighted assets and a total risk-based capital ratio of at least 15% of total risk-weighted assets. It must also submit a plan to sell or merge the bank, should it fail to maintain those minimums or to implement an acceptable capital plan.
The South Lafourche board was ordered to evaluate the management team's qualifications.
And a Nov. 14 enforcement action against Bank of Hazlehurst ordered its board to participate more in the bank's affairs and to adopt a lending and collection policy with specific guidelines for agricultural loans.
The Hazlehurst, Ga.-based bank was required to retain qualified management, including, at the minimum, a CEO, CFO and senior lending officer. It was told to maintain a leverage ratio of at least 8% and a total capital ratio of at least 10%, to charge off or collect all assets classified as a loss and 50% of those classified as doubtful from an April report, and to implement a policy for managing interest rate risk.
The order also limits the bank's ability to establish or relocate offices; pay dividends; and accept, renew or roll over brokered deposits.
Termination of consent orders
The regulator, on the other hand, lifted its November 2015 enforcement action against Louisville, Ky.-based PBI Bank; its July 2015 action against Attica, Ohio-based Sutton Bank; its March 2010 order against Lincolnwood, Ill.-based Brickyard Bank; its September 2015 action against Lake Mills, Wis.-based Bank of Lake Mills; its May 2010 order against Maple Grove, Minn.-based Eagle Community Bank; and its November 2014 order against Burnettsville, Ind.-based State Bank of Burnettsville.
Assessment of civil money penalties
The FDIC assessed a $153,850 civil money penalty against San Juan, Puerto Rico-based Oriental Bank over alleged violations of the Flood Disaster Protection Act.
The FDIC issued a prohibition order against Christopher Goerdt, alleging that he engaged in unsafe or unsound banking practices or in breaches of fiduciary duty while at Peoples Trust and Savings Bank, demonstrating his "unfitness" to serve at an insured depository institution. Goerdt had been president and CEO of the Riverside, Iowa-based bank.
A prohibition order was also issued against Russell Wagler, former president of Crawfordsville, Iowa-based Peoples Savings Bank. The regulator accused him of misappropriating bank funds for personal use.
The FDIC issued similar orders against Samuel Cobb and Anthony Atkins, former vice president and president, respectively, of GulfSouth Private Bank. Cobb in February pleaded guilty to conspiracy to commit fraud, among other charges. Atkins in March was convicted of fraud and other crimes and later ordered to spend 63 months in prison and to pay more than $2.4 million in restitution.
Destin, Fla.-based GulfSouth failed in October 2012.