The Federal Deposit Insurance Corp. on May 25 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.
Consent orders
* Onida, S.D.-based Sunrise Bank Dakota on April 4 entered into a consent order with the FDIC, requiring the bank to retain qualified management, develop an independent external loan review program, adopt risk reduction plans and avoid extending additional credit to adversely classified borrowers without board approval, among other things.
Sunrise Bank Dakota is a unit of Adino Co.
* The FDIC on April 25 modified its previously issued consent order to Philadelphia-based United Bank of Philadelphia. The modified order requires United Bank of Philadelphia's board to immediately increase its oversight of the bank and assume full responsibility for the bank's timely and complete compliance with the order. Part of that stipulation is to add two additional directors with demonstrated abilities and expertise in banking, plus one of these areas: strategic planning, expense management, income generation, budgeting or capital planning.
In addition, the board is required to develop a restoration plan to restore the bank to a safe and sound condition. The bank must develop a plan within 90 days to achieve and maintain a minimum leverage ratio of 6.5% of total assets, and a total capital ratio of at least 10.5% of total risk-weighted assets by Dec. 31. And by June 30, 2019, the bank must reach and maintain a leverage ratio of at least 7.5% of total assets, and a minimum total capital ratio of 11.5% of total risk-weighted assets. By Sept. 30, 2019, the bank should have a leverage ratio of at least 8.5% of total assets, and a total capital ratio of at least 12.5% of total risk-weighted assets.
Also, the bank must maintain and reach a minimum return on assets of 0% by the end of 2018, 0.10% by the end of 2019, and 0.20% by the close of 2020. The other requirements that the bank needs to fulfill, according to the modified consent order, included preparing a classified asset plan, ensuring sufficient liquidity, correction and conformance, and dividend restriction.
United Bancshares Inc. is the holding company of United Bank of Philadelphia.
Prohibition order
Geffrey Sawtelle, former president and CEO of Farmers Exchange Bank, was prohibited from further participation in the conduct of the affairs of any financial institution.
Civil money penalty
* Sawtelle, formerly of Farmers Exchange Bank, was also assessed a $140,000 civil money penalty.
* Trae Dorough, former president and CEO of failed Montgomery Bank & Trust, was assessed a civil money penalty of $10,000.
Termination of consent order
* The FDIC on April 23 lifted its October 2016 consent order against New Jersey-based 1st Colonial Community Bank.
* On April 19, the regulator terminated the May 2010 consent order against Hazelwood, Mo.-based Superior Bank.
* The regulator on April 17 terminated its April 2017 consent order against Hydro, Okla.-based Bank of Hydro.
Terminating supervisory prompt corrective action directive
The supervisory prompt corrective action directive against McHenry, Ill.-based McHenry Savings Bank was terminated by the FDIC on April 9.
McHenry Bancorp Inc. is the parent company of McHenry Savings Bank.
