FDIC Cease and Desist Orders
Being that it is ‘bank failure Friday’ I thought it would be appropriate to provide the list of banks that have so far received cease and desist orders from the Federal Deposit Insurance Corporation (FDIC). The FDIC has been ‘very’ busy these days.
I will update this document as each months data is issued by the FDIC.
FDIC Cease and Desist Orders for 2009
FDIC Cease and Desist Orders for 2009 Is your bank on this list? If yes then read the associated cease and desist order slapped on them by the FDIC. Regarding enforcement actions the FDIC takes against banks: “Generally, the FDIC pursues enforcement actions against the [banks] for violations of laws, rules, or regulations, unsafe or unsound banking practices, breaches of fiduciary duty, and violations of final orders, conditions imposed in writing or written agreements. In addition, the FDIC has the statutory authority to terminate the deposit insurance of any insured depository institution for violation of a law, rule, regulation, condition imposed in writing, or written agreement, or for being in an unsafe or unsound condition or engaging in unsafe or unsound banking practices.†2009 Enforcement Decisions Uniti Bank, Buena Park, CA; FDIC-08-395b; Issued 1/30/09 – PDF (PDF Help) Golden Coast Bank, Long Beach, CA; FDIC-08-359b; Issued 1/27/09 – PDF (PDF Help) First Vietnamese American Bank, Westminster, CA; FDIC-08-365b; Issued 1/29/09 – PDF (PDF Help) Douglas County Bank, Douglasville , GA; FDIC-08-357b; Issued 1/27/09 – PDF (PDF Help) First Commerce Community Bank, Douglasville , GA; FDIC-08-339b; Issued 1/6/09 – PDF (PDF Help) Central Progressive Bank, Lacombe, LA; FDIC-08-398b; Issued 1/28/09 – PDF (PDF Help) Horizon Bank, Pine City, MN; FDIC-08-393b; Issued 1/6/09 – PDF (PDF Help) Paragon Bank, Wells, MN; FDIC-08-212b; Issued 1/26/09 – PDF (PDF Help) Westbridge Bank and Trust, Chesterfield , MO; FDIC-09-016b; Issued 1/23/09 -PDF (PDF Help) Garden City Bank, Garden City, MO; FDIC-09-009b; Issued 1/29/09 – PDF (PDF Help) Geauga Savings Bank, Newbury, OH; FDIC-08-241b; Issued: 1/12/09 – PDF (PDF Help) First State Bank of Altus, Altus, OK; FDIC-08-287b; Issued 1/16/09 – PDF (PDF Help) Citizens State Bank, Woodville, TX; FDIC-08-379b; Issued 1/30/09 – PDF (PDF Help) First Bank of Beverly Hills, Calabasas, CA; FDIC-09-051b; Issued 2/13/09 – PDF (PDF Help) Imperial Capital Bank, La Jolla, CA; FDIC-08-392b; Issued 2/17/09 – PDF (PDF Help) First Regional Bank, Los Angeles, CA; FDIC-08-353b; Issued 2/23/09 – PDF (PDF Help) Desert Commercial Bank, Palm Desert, CA; FDIC-08-397b; Issued 2/17/09 – PDF (PDF Help) Bank of Agriculture and Commerce, Stockton, CA; FDIC-08-408b; Issued 2/19/09 – PDF (PDF Help) Temecula Valley Bank, Temecula, CA; FDIC-09-057b; Issued 2/12/09 – PDF (PDF Help) Community Bank of Lemont, Lemont, IL; FDIC-08-372b; Issued 2/5/09 – PDF (PDF Help) Midwest Community Bank, Plainville, KS; FDIC-08-373b; Issued 2/25/09 – PDF (PDF Help) Republic Bank & Trust Company, Louisville, KY; FDIC-08-308b; Issued 2/27/09 – PDF (PDF Help) University Bank, Ann Arbor, MI; FDIC-08-194b; Issued 2/12/09 – PDF (PDF Help) West Michigan Community Bank, Hudsonville, MI; FDIC-08-238b; Issued 2/19/09 – PDF (PDF Help) Bank of Leeton, Leeton, MO; FDIC-09-036b; Issued 2/27/09 – PDF (PDF Help) Concord Bank, St. Louis, MO; FDIC-08-368b; Issued 2/13/09 – PDF (PDF Help) Sherman County Bank, Loup City, NE; FDIC-09-046b; Issued 2/9/09 – PDF (PDF Help) Security Savings Bank, Henderson, NV; FDIC-09-004b; Issued 2/3/09 – PDF (PDF Help) The Park Avenue Bank, New York, NY; FDIC-08-401b; Issued 2/11/09 – PDF (PDF Help) Waterford Village Bank, Williamsville, NY; FDIC-08-402b; Issued 2/12/09 – PDF (PDF Help) Cape Fear Bank, Wilmington, NC; FDIC-09-005b; Issued 2/24/09 – PDF (PDF Help) Columbia River Bank, The Dalles, OR; FDIC-08-360b; Issued 2/9/09 – PDF (PDF Help) Bank of Westminster, Westminster, SC; FDIC-08-309b; Issued 2/24/09 – PDF (PDF Help) Woodlands Commercial Bank, Salt Lake City, UT; FDIC-09-041b; Issued 2/4/09 – PDF (PDF Help) Nexity Bank, Birmingham, AL; FDIC-09-011b; Issued 3/20/09 – PDF (PDF Help) Pan American Bank, Los Angeles CA; FDIC-09-114b; Issued 3/23/09 – PDF (PDF Help) Innovative Bank, Oakland, CA; FDIC-09-066b; Issued 3/3/09 – PDF (PDF Help) The Bank of Bonifay, Bonifay, FL; FDIC-08-325b; Issued 3/23/09 – PDF (PDF Help) Security Exchange Bank, Marietta, GA; FDIC-08-352b; Issued 3/10/09 – PDF (PDF Help) American Southern Bank, Kennesaw, GA; FDIC-08-366b; Issued 3/31/09 – PDF (PDF Help) Heartland Bank, Leawood, KS; FDIC-08-342b; Issued 3/30/09 – PDF (PDF Help) Century Bank of Kentucky, Inc., Lawrenceburg , KY; FDIC-08-262b; Issued 3/23/09 – PDF (PDF Help) Statewide Bank, Covington, LA; FDIC-08-369b; Issued 3/25/09 – PDF (PDF Help) K Bank, Randallstown, MD; FDIC-09-029b; Issued 4/1/09 – PDF (PDF Help) Muskegon Commerce Bank, Muskegon, MI; FDIC-08-274b; Issued 3/12/09 – PDF (PDF Help) State Bank of Aurora, Aurora, MN; FDIC-09-026b; Issued 3/19/09 -PDF (PDF Help) Brickwell Community Bank, Woodbury, MN; FDIC-08-332b; Issued 3/3/09 – PDF (PDF Help) The Riverbank, Wyoming, MN; FDIC-08-389b; Issued 3/11/09 – PDF (PDF Help) The Farmers Bank, Lincoln, NE; FDIC-09-060b; Issued 3/13/09 – PDF (PDF Help) Nuestro Banco, Raleigh, NC; FDIC-09-006b; Issued 3/12/09 – PDF (PDF Help) Cooperative Bank, Wilmington, NC; FDIC-09-053b; Issued 3/12/09 – PDF (PDF Help) Columbia Community Bank, Hillsboro, O R; FDIC-09-084b; Issued 3/4/09 – PDF (PDF Help) First Bank & Trust, Brookings, S D; FDIC-07-228b; FDIC-07-260k; Issued 3/26/09 – PDF (PDF Help) First State Bank, Wilmot, SD; FDIC-09-023b; Issued 3/3/09 – PDF (PDF Help) Horizon Bank, Bellingham, WA; FDIC-08-404b; Issued 3/3/09 – PDF (PDF Help) Frontier Bank, Everett, WA; FDIC-09-080b; Issued 3/20/09 – PDF (PDF Help) Mountain Pacific Bank, Everett, WA; FDIC-09-079b; Issued 3/5/09 – PDF (PDF Help) Plaza Bank, Irvine, CA; FDIC-09-175b; Issued 4/29/09 – PDF (PDF Help) Mirae Bank, Los Angeles, CA; FDIC-09-172b; Issued 4/27/09 – PDF (PDF Help) Independence Bank, Newport Beach, CA; FDIC-09-162b; Issued 4/24/09 – PDF (PDF Help) New Resource Bank, San Francisco, CA; FDIC-09-103b; Issued 4/28/09 – PDF (PDF Help) Affinity Bank, Ventura, CA; FDIC-09-086b; Issued 4/22/09 – PDF (PDF Help) Rocky Mountain Bank & Trust Florence, Florence, CO; FDIC-09-065b; Issued 4/2/09 – PDF (PDF Help) New Frontier Bank, Greeley, CO; FDIC-09-146b; Issued 4/6/09 – PDF (PDF Help) Coastal Community Bank, Panama City Beach, FL; FDIC-09-062b; Issued 4/22/09 – PDF (PDF Help) Georgia Heritage Bank, Dallas, GA; FDIC-09-013b; Issued 4/24/09 – PDF (PDF Help) Appalachian Community Bank, Ellijay, GA; FDIC-09-010b; Issued 4/24/09 – PDF (PDF Help) Security Bank of Jones County, Gray, GA; FDIC-09-124b; Issued 4/17/09 – PDF (PDF Help) Community Capital Bank, Jonesboro, GA; FDIC-09-019b; Issued 4/16/09 – PDF (PDF Help) Security Bank of Bibb County, Macon, GA; FDIC-09-050b; Issued 4/17/09 – PDF (PDF Help) Security Bank of Gwinnett County, Suwanee, GA; FDIC-08-411b; Issued 4/17/09 – PDF (PDF Help) Security Bank of North Metro, Woodstock, GA; FDIC-09-116b; Issued 4/17/09 – PDF (PDF Help) Bank of Lincolnwood, Lincolnwood, IL; FDIC-09-135b; Issued 4/21/09 – PDF (PDF Help) West Suburban Bank, Lombard, IL; FDIC-08-384b; Issued 4/23/09 – PDF (PDF Help) First Mariner Bank, Baltimore, MD; FDIC-07-285b; FDIC-08-358k; Issued 4/22/09 – PDF (PDF Help) Butler Bank, Lowell, MA; FDIC-09-148b; Issued 4/17/09 – PDF (PDF Help) Riverview Community Bank, Otsego, MN; FDIC-09-064b; Issued 4/7/09 – PDF (PDF Help) Carson River Community Bank, Carson City, NV; FDIC-09-067b; Issued 4/3/09 – PDF (PDF Help) Great Basin Bank of Nevada, Elko, NV; FDIC-09-095b; Issued 4/15/09 – PDF (PDF Help) Badger State Bank, Cassville, WI; FDIC-09-077b; Issued 4/30/09 – PDF (PDF Help) Marine Bank, Wauwatosa, WI; FDIC-09-43b; Issued 4/14/09 – PDF (PDF Help) First State Bank, Flagstaff, AZ; FDIC-09-171b; Issued 5/1/09 – PDF (PDF Help) Golden Security Bank, Rosemead, CA; FDIC-09-108b; Issued 5/8/09 – PDF (PDF Help) Darien Rowayton Bank, Darien, CT; FDIC-09-178b; Issued 5/7/09 – PDF (PDF Help) Premier American Bank, Miami, FL; FDIC-09-061b; Issued 5/18/09 – PDF (PDF Help) The Royal Palm Bank of Florida, Naples, FL; FDIC-09-113b; Issued 5/20/09 – PDF (PDF Help) First Commercial Bank of Tampa Bay, Tampa , FL; FDIC-08-347b; Issued 5/11/09 – PDF (PDF Help) Community Bank & Trust, Cornelia, GA; FDIC-09-068b; Issued 5/11/09 – PDF (PDF Help) The Gordon Bank, Gordon, GA; FDIC-09-109b; Issued 5/11/09 – PDF (PDF Help) Crescent Bank and Trust Company, Jasper, GA; FDIC-09-087b; Issued 5/11/09 – PDF (PDF Help) Farmers & Merchants Bank, Lakeland, GA; FDIC-09-091b; Issued 5/19/09 – PDF (PDF Help) The Bank of Commerce, Wood Dale, IL; FDIC-09-055b; Issued 5/27/09 – PDF (PDF Help) Town & Country Bank, Leawood, KS; FDIC-09-166b; Issued 5/29/09 – PDF (PDF Help) Peoples Bank of Kentucky, Inc., Flemingsburg , KY; FDIC-09-020b; Issued 5/8/09 – PDF (PDF Help) Westernbank Puerto Rico, Mayaguez, PR; FDIC-08-275b; Issued 5/22/09 – PDF (PDF Help) Coffee County Bank, Manchester, TN; FDIC-09-094b; Issued 5/1/09 – PDF (PDF Help) Millennium State Bank of Texas, Dallas, TX; FDIC-09-138b; Issued 5/19/09 – PDF (PDF Help) Capital Community Bank, Provo, UT; FDIC-09-236b; Issued 5/20/09 – PDF (PDF Help) Liberty Bank, Salt Lake City, UT; FDIC-09-122b; Issued 5/26/09 – PDF (PDF Help) Homestreet Bank, Seattle, WA; FDIC-09-121b; Issued 5/8/09 – PDF (PDF Help) AmericanWest Bank, Spokane, WA; FDIC-09-144b; Issued 5/11/09 – PDF (PDF Help) Source: http://www.fdic.gov/bank/individual/enforcement/neworders.html
Given Maggie Incandela’s track record with failed, or failing banks, it’s certainly no coincidence that New Resource Bank received a devastating “cease and desist†order from the FDIC shortly after Maggie Incandela bailed out as Executive Vice-President and Chief Credit Officer (but based on the financial condition when she was EVP and Chief Credit Officer). Maggie Incandela’s accomplishments are detailed in the cease and desist order from the FDIC:
(a) operating with management whose policies and practices are detrimental to the Bank;
(b) operating with a board of directors which has failed to provide adequate supervision over and direction to the active management of the Bank;
c) operating with a high percentage of poor quality loans;
(d) engaging in unsatisfactory lending and collection policies;
(e) operating in such a manner as to produce operating losses;
(f) operating with inadequate policies and practices regarding liquidity management; and
(g) operating in violation of Section 22(h) of the Federal Reserve Act, 12 U.S.C. § 375b, and section 215 of Regulation O of the Board of Governors of the Federal Reserve System, 12 C.F.R. § 215, made applicable to state nonmember banks by section 18(j)(2) of the Act, 12 U.S.C. §1828(j)(2), as more fully described in the ROE as September 30, 2008, dated November 10, 2008.
It’s not like Incandela can blame her predecessor, because there wasn’t one. Margaret Incandela was the only Chief Credit Officer New Resource ever had. The credit quality buck stops at the EVP and Chief Credit Officer’s desk. Incandela didn’t stick around long enough to face the consequences of her documented mismanagement.
Well, Margaret Incandela strikes again. From the latest earnings release from Heritage Bank of Commerce: (more later, but this is a start. How Maggie Incandela’s underwriting non-skills tanks another bank)
“The Company also announced that the Federal Reserve Board (“FRB”) recently completed the field work portion of its regularly scheduled examination in September 2009. As a result of the Company’s losses in 2009, primarily due to higher provisions for loan losses because of credit quality deterioration, the Company expects to enter into a written agreement with the FRB. The agreement will require the Company to develop an updated strategic plan to improve the quality of assets, maintain adequate capital and ensure sustained earnings, and to take some other actions to improve our appraisal policies, capital planning and liquidity contingency funding plan. The Company will also be required to request the approval of the FRB prior to incurring or increasing any debt, paying dividends on common and preferred stock, paying interest on trust preferred securities, repurchasing capital stock and making certain changes to its directors or senior executive officers. The Company believes the FRB will be finalizing the written agreement within the next 60 to 90 days.
Well, at least Margaret Incandela is planning ahead. While working for Heritage Bank of Commerce in California, she and her husband have purchased a home in a suburb of Chicago.
As reported on highbeam.com: (http://www.highbeam.com/doc/1G1-203569568.html)
“$461,000; 402 E. Knob Hill Drive, Arlington Heights, 60004; Sold on June 8, 2009, by Bugajski Trust to John J. Incandela and Margaret Incandela.”
Given that Maggie Incandela started with Heritage Bank of Commerce in late 2008, it appears that Incandela had the foresight to start looking for a house in Chicago on the day she reported for work with Heritage Bank in California. Now there’s one loyal employee!
One might also presume that is also Maggie’s exit plan from a crashing HTBK.