The FDIC on Jan. 27 released a list of orders of administrative enforcement actions taken against banks and individuals in December 2016. The agency also noted in a news release that no administrative hearings are scheduled for February.
The following list excludes certain actions that do not meet criteria for news coverage. Click here to view an Excel template showing SNL's full database of enforcement actions against U.S. banks and thrifts.
Assessment of civil money penalty
* $32,500 against Peoria, Ill.-based First State Bank of Illinois on Dec. 15, 2016. The bank is a unit of First State Bancorp. Inc.
* $35,000 against Howard Beaty Jr., president, CEO and director of Crossett, Ark.-based First State Bank and parent company Evergreen Bancshares Inc. on Dec. 15, 2016.
Assessment of civil money penalty, notice of order for restitution, removal/prohibition order
* $175,000 against Gregg Ward, president and vice chairman, and $35,000 against Susan Ward, director of Camargo, Okla.-based First State Bank, on Dec. 15, 2016. The bank was acquired by Oklahoma City-based Haines Financial Corp in 2011. The order noted that the respondents breached their fiduciary duties and violated laws, while deriving pecuniary gain and causing the bank more than minimal loss.
* $70,000 against Donald Lancaster, an affiliate of Union Bank & Trust Co., a unit of Union Banc Corp., on Dec. 15, 2016.
Consent orders
* Against Lowell, Mass.-based Sage Bank on Dec. 13, 2016. The bank's board of directors consented but did not admit or deny any wrongdoing relating to weaknesses in management, earnings, capital, liquidity and interest rate risk. The bank is required to hire and retain a qualified management team, and formulate a management plan within 60 days of the consent order, among other stipulations.
* Against Moultrie, Ga.-based Ameris Bank, a unit of Ameris Bancorp, on Dec. 16, 2016. The consent order related to the bank's weaknesses in Bank Secrecy Act compliance program. The consent order requires the bank, among others, to revise its BSA compliance program and name a qualified BSA officer.
* Against Colquitt, Ga.-based PeoplesSouth Bank, a unit of PeoplesSouth Bancshares Inc., on Dec. 19, 2016. The consent order relates to any unsound practices or weaknesses related to the bank's information technology and its compliance with the Bank Secrecy Act. The enforcement action requires the bank's board of directors to be actively involved in approving bank policies and activities, including audit reports; internal control reviews; domestic Automated Clearing House transactions; and BSA risk assessment, staffing, training and testing, among other areas. In addition, the board is required to set up a board committee consisting at least five members, to supervise the bank's compliance with the enforcement action.
* Against Winston-Salem, N.C.-based Branch Banking and Trust Co., a unit of BB&T Corp., on Dec. 20, 2016. The enforcement action was issued over internal control deficiencies related to the bank's Bank Secrecy Act and Anti-Money Laundering compliance program.
Modification of consent order
* Against Elizabeth, N.J.-based Crown Bank on Dec. 19, 2016. The consent order amends the amended consent order issued by the FDIC on May 9, 2013. Under the latest amendment, the bank's board is required to retain an independent third party to conduct a management study of the bank's management and staffing needs. In addition, the bank is required to submit a copy of the proposed engagement letter for the management study to the regional director of the FDIC New York Regional Office and the Commissioner of Banking and Insurance of the State of New Jersey, within 30 days of the latest amended consent order.
Removal/prohibition order
* Against Mark Warne, former president of Brook, Ind.-based Community State Bank, on Dec. 28, 2016.
Termination of consent orders
* Miami-based International Finance Bank on Dec. 19, 2016. The consent order was issued July 1, 2011.
* Lowell, Mass.-based Sage Bank on Dec. 27, 2016. The consent order was issued Dec. 19, 2014.
Termination of insurance - w/o deposits
* St. Paul, Minn.-based Capital Bank, on Dec. 20, 2016, effective March 31.
