The number of community banks under enforcement actions fell in January, as the Federal Deposit Insurance Corp. ended 16 orders and issued five on the month.

The $413 million-asset Norstates Bank in Waukegan, Ill., was the largest target of a consent order. The Jan. 9 order requires the bank to improve oversight of its board and lending procedures and maintain a Tier 1 leverage ratio of 8% and a risk-based ratio of 12%. Its current ratios are 6.67% and 12.11%, respectively. This consent order replaced one from April 2010.

Commerce Bank of Arizona in Tuscan, with $224 million in assets, was required Jan. 14 to formulate a succession plan for its chief executive and fill its vacant chief credit officer position. It was also ordered to improve its loan procedures and maintain adequate regulatory capital. The bank's Tier 1 leverage ratio was 9.27% and its total risk-based capital ratio was 14.13% at yearend.

The $105 million-asset Surety Bank in Deland, Fla., signed a consent order on Jan. 23, which mandates that the bank improve its internal controls.

The $88 million-asset Grant County Deposit Bank in Williamstown, Ky., signed an order Jan. 29 that required it to appoint a compliance committee, hire a full-time compliance officer, improve board oversight and conduct an external audit.

Under a Jan. 24 order, Key Community Bank in Inver Grove Heights, Minn., must charge off and otherwise reduce bad loans, establish a strategic plan and raise its Tier 1 leverage ratio to 8.5% and its total risk-based capital ratio to at least 11%. The $46 million-asset bank had a Tier 1 ratio of 6.13% and a total risk-based leverage ratio of 10.41% as of the end of 2012.

The FDIC terminated enforcement actions against 15 other banks. They were Regal Financial Bank in Seattle, Wash.; Northwest Bank in Lake Oswego, Ore.; The Community Bank in Brockton, Mass.; Hastings State Bank in Hastings, Neb.; Cambridge State Bank in Cambridge, Wis.; The Citizens State Bank in Corrigan, Texas; New Market Bank in Elko-New Market, Minn.; South Valley Bank & Trust in Klamath Falls, Ore.; Westbound Bank in Katy, Texas; 1st Regents Bank in Andover, Minn.; The Palmetto Bank in Laurens, S.C.; Alliance Banking Company in Winchester, Ky.; Hastings State Bank in Hastings, Neb.; The Home Savings and Loan Co. of Youngstown in Ohio; and First Independence Bank in Detroit.

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