The Federal Deposit Insurance Corp. issued two consent orders and terminated 21 enforcement actions in February, according to its latest roundup of regulatory orders.

The FDIC issued new consent orders against Allied First Bank in Oswego, Ill., and The Bank of Santa Barbara in Santa Barbara, Calif.

The $121 million-asset Allied First was required to boost Tier 1 capital to at least 8% and raise its total risk-based capital ratio to at least 12%. The lender was also ordered to improve earnings and management and address weaknesses in asset quality.

The $153 million-asset Bank of Santa Barbara was tasked with improving compliance with the Bank Secrecy Act. The bank must correct internal control weaknesses, according to the consent order.

The FDIC terminated prompt corrective action directives against six banks: Bank of Las Vegas in Nevada.; Community Shores Bank in Muskegon, Mich.; First Community Bank of Crawford County in Van Buren, Ark.; MBank in Gresham, Ore.; Michigan Commerce Bank in Ann Arbor; and Sunrise Bank of Albuquerque in New Mexico.

Fifteen banks were released from consent orders: Bank of George in Las Vegas; Bank of Bozeman in Montana; First Bank of Dalton in Georgia.; First Community Bank of Crawford County in Van Buren, Ark.; The Foster Bank in Chicago; Foundation Bank in Bellevue, Wash.; Key Community Bank in Inver Grove Heights, Minn.; La Farge State Bank in Wisconsin; OmniBank in Mantee, Miss.; Premier Service Bank in Riverside, Calif.; Proficio Bank in Cottonwood Heights, Utah; Regal Bank & Trust in Owings Mills, Md.; RiverBank in Spokane, Wash.; Security State Bank in Iron River, Wis.; and Signature Bank in Bad Axe, Mich.

The FDIC also modified orders against two lenders. Fox River State Bank in Burlington, Wis., was released from a cease-and-desist order and now operates under a consent order. The $73 million-asset bank is required to maintain a minimum 9% Tier 1 ratio and 12% total risk-based capital ratio, reduce troubled loans, address management deficiencies and improve liquidity.

The agency modified a consent order against OptimumBank in Plantation, Fla. The $129 million-asset bank must increase board oversight, retain qualified management, reduce the concentration of credit in its commercial real estate portfolio, examine weak administrative practices for underwriting and monitoring loans and loan modifications, improve liquidity, manage interest rate risk and reduce bad loans, among other requirements. It was also ordered to maintain a minimum 8% Tier 1 leverage ratio and minimum 12% total risk-based capital ratio.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.