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FDIC terminates actions against Mountain Valley Bank, PeoplesSouth Bank

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FDIC terminates actions against Mountain Valley Bank, PeoplesSouth Bank

The Federal Deposit Insurance Corp. on May 31 released a list of enforcement actions taken against banks and individuals in April. No administrative hearings are scheduled for June.

The following list excludes actions previously covered by S&P Global Market Intelligence and those that do not meet criteria for news coverage. Click here to view our full database of enforcement actions against U.S. banks and thrifts.

Termination of consent orders

The regulator on April 10 terminated its Dec. 19, 2016, consent order issued against Colquitt, Ga.-based PeoplesSouth Bancshares Inc. unit PeoplesSouth Bank.

The enforcement action required the bank's board to be actively involved in approving bank policies and activities, including audit reports; internal control reviews; domestic Automated Clearing House transactions; and Bank Secrecy Act risk assessment, staffing, training and testing, among other areas.

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The FDIC on April 11 terminated its Feb. 4, 2016, consent order issued against Ville Platte, La.-based Evangeline Bancshares Inc. unit Evangeline Bank and Trust Co.

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The FDIC on April 4 terminated its Oct. 2, 2018, consent order issued against Sequatchie County Bancorp Inc. unit Dunlap, Tenn.-based Mountain Valley Bank, over violations of the Bank Secrecy Act and anti-money laundering compliance.

The order required Mountain Valley to develop, adopt and implement a compliance plan for the administration of its BSA compliance program.

Assessment of civil money penalty

The regulator on April 4 ordered Astoria, N.Y.-based Alma Bank to pay a civil money penalty of approximately $1.3 million for violation of the Bank Secrecy Act and its implementing regulations.

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The FDIC on April 2 ordered San Juan, Puerto Rico-based First BanCorp. unit FirstBank Puerto Rico to pay a civil money penalty of $17,700 for violations of the Flood Disaster Protection Act and the FDIC's rules and regulations.

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The regulator on April 1 ordered Bluffs, Ill.-based Scott Morgan Bancorp Inc. unit Bank of Bluffs to pay a civil money penalty of $18,812 for violations of the Flood Disaster Protection Act and the notice requirements under the National Flood Insurance Act of 1968.

Consent orders

The regulator on April 30 issued a consent order against Los Angeles-based Pacific City Financial Corp. unit Pacific City Bank for unsafe or unsound banking practices related to Bank Secrecy Act and Anti-Money Laundering programs.

Pacific City Bank was ordered to comply with the BSA and its rules and regulations, and to correct the violations of law, among other things. The bank's board is to increase its oversight of the bank's compliance with the BSA.

The bank did not admit or deny the charges.

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The FDIC on April 8 issued a consent order against Peoples Home Holding Inc unit Portland, Ark.-based HomeBank of Arkansas for unsafe or unsound banking practices and violations of law and regulation relating to weaknesses in management, capital, earnings, asset quality, liquidity, and sensitivity to market risk.

HomeBank is required to have and retain qualified management, comply with applicable laws and regulations and operate HomeBank in a safe and sound manner, among other things.

The bank did not admit or deny any charges.