The Federal Deposit Insurance Corp. took action against three banks in August and released one bank from a consent order.
Hancock Bank & Trust Co. in Hawesville, Ky., was hit with a consent order relating to its capital adequacy, asset quality, management, earnings and liquidity. The $317 million-asset bank was ordered to maintain a minimum Tier 1 leverage ratio of 9% and total risk-based capital of at least 13%; reduce troubled assets and delinquent loans; and develop a liquidity plan to meet contingency funding needs over the next three months.
First Security Trust and Savings Bank in Elmwood Park, Ill., was slapped with a consent order for its consumer protection and compliance practices. First Security, a $225 million-asset bank, was ordered to revise and implement effective compliance policy; unroll an employee training program on consumer laws; hire an external auditor to review its compliance with consumer laws; and take steps to ensure its compliance with the Home Mortgage Disclosure Act.
Peoples Bank in Tulsa, Okla., was ordered to pay a civil money penalty of $20,000 for violating the Equal Credit Opportunity Act. The $106 million-asset bank charged Hispanic applicants higher interest rates on auto loans in 2011, according to regulators.
Regulators also terminated a 2010 consent order with the $547 million-asset Citizens Union Bank of Shelbyville in Shelbyville, Ky. That order required the bank to maintain a minimum Tier 1 leverage ratio of 9% and total risk-based capital of at least 12%; reduce delinquent and troubled loans; revise its loan grading and review procedures; increase its allowance for loan and lease losses; and develop a strategic plan to grow assets and raise capital.