Three severe enforcement actions were handed out in January, including the first prompt corrective action of the year.
As of March 8, there were 129 banks and thrifts operating under severe enforcement actions issued since 2010.
On Jan. 11, Oklahoma-based Fort Gibson State Bank received a prompt corrective action directive from the Federal Deposit Insurance Corp. that labeled the bank "significantly undercapitalized." At the end of 2018, Fort Gibson's leverage ratio was 3.12%, down from 8.14% at the end of 2017.
During 2018, the bank's credit quality deteriorated rapidly. At the end of 2017, only 0.03% of the bank's loans were 90-plus days past due or in nonaccrual status. By the end of the 2018 third quarter, however, that level had risen to 5.04% and hit 9.43% in the fourth quarter.
Another Oklahoma-based bank, Lakeside State Bank, received a consent order from the FDIC on Jan. 30 related to concerns about the bank's Bank Secrecy Act, information technology and internal control functions.
San Antonio-based USAA Federal Savings Bank received a consent order on Jan. 7 from the Office of the Comptroller of the Currency tied to the company's compliance management systems and risk governance.
Currently, Georgia has 11 banks and thrifts operating under a severe enforcement action, the most of any state. However, that accounts for only 7% of the institutions headquartered in Georgia, down from more than 25% during the credit crisis years.
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To view a refreshable spreadsheet of all operating banks and thrifts under a severe enforcement action as of March 10, click here.
For a spreadsheet listing the five most recent enforcement actions for an individual bank or thrift, click here.
Click here to visit S&P Global Market Intelligence's enforcement actions page.