Oriental Bank in San Juan, Puerto Rico, has been ordered to pay $153,000 for failing to notify borrowers that they were required to purchase flood insurance.

The penalty, issued on Nov. 9, was published Friday by the Federal Deposit Insurance Corp. in its monthly list of enforcement actions. Oriental, a subsidiary of OFG Bancorp, violated the requirement on 321 occasions, according to the agency.

Oriental has $6.3 billion in assets. The company, along with others in Puerto Rico, is assessing the impact of Hurricane Maria on its financial operations. The storm devastated the island in late September.

The FDIC also hit the Savings Bank in Circleville, Ohio, with a $7,500 penalty. In an enforcement agreement signed with the $358 million-asset bank on Nov. 2, the agency said the bank “engaged in a pattern” of violating requirements under the National Flood Insurance Act.

The $237 million-asset Bank of Odessa in Odessa, Mo., was ordered to pay $5,000 for violation related to lending for mobile homes located in a flood zone.

Meanwhile, South Lafourche Bank & Trust in Larose, La., signed a consent order on Nov. 1. Under the agreement, the $156 million-asset bank agreed to charge off assets that were classified as a loss as of its most recent examination.

Additionally, South Lafourche agreed to submit to the FDIC a plan for reducing classified assets and delinquencies. The bank must also boost its loan-loss allowance by at least $500,000 and develop a plan to improve profitability.

The FDIC also issued a consent order against the $124 million-asset Bank of Hazlehurst in Hazlehurst, Ga. Among other stipulations, the agreement requires the bank to maintain a leverage ratio of at least 8% and a total capital ratio of at least 10%.

The FDIC last month also terminated consent orders for the following banks: PBI Bank in Louisville, Ky.; Sutton Bank in Attica, Ohio; Brickyard Bank in Lincolnwood, Ill.; Bank of Lake Mills in Lake Mills, Fla.; Eagle Community Bank in Maple Grove, Minn.; and State Bank of Burnettsville in Burnettsville, Ind.

FDIC headquarters in Washington, D.C.
FDIC headquarters in Washington, D.C. Bloomberg News

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Kristin Broughton

Kristin Broughton

Kristin Broughton is a reporter for American Banker, where she writes about the business of national and regional banking.