Fed Cuts Loose Five Banks from Enforcement Actions

The Federal Reserve recently announced that it had released five community banks from enforcement actions.

The Fed from Jan. 20 to Feb. 29 terminated written agreements with ColoEast Bankshares in Lamar, Colo.; Community First in Columbia, Tenn.; CSRA Bank in Wrens, Ga.; FMB Equibanc in Statesboro, Ga.; and Valley Bancorp in Brighton, Colo. The moves were listed in a notice on the Fed's website that updated its actions through March 5.

The Fed's June 2012 written agreement for the $756 million-asset ColoEast required it to serve as a source of strength for its Colorado East Bank & Trust subsidiary. ColoEast also was ordered to submit a revised capital plan, and file a report on its cash-flow projections.

M&A

Triumph in Texas to Buy ColoEast in Colorado

Triumph Bancorp in Dallas has agreed to buy ColoEast Bankshares in Lamar, Colo.

By Paul Davis

March 7
Community banking

Centrue in Ill. Freed from Enforcement Action

Centrue Financial in Ottawa, Ill., has been released from an enforcement action that had prohibited the company from paying dividends without regulatory approval.

By Andy Peters

February 18
Community banking

Six Years in a Penalty Box: A Small-Bank Reg Order Tale

FNBH Bancorp in Michigan has been unable to make an important move without its primary regulator's OK in the six years since its nonperforming assets hit double digits. It's an extreme example of the tension between past problems and future visions that freezes many banks.

By John Reosti

August 12

ColoEast earlier this month agreed to sell itself to the $1.7 billion-asset Triumph Bancorp in Dallas for $70 million in cash.

Community First, the $468 million-asset holding company for Community First Bank & Trust, was placed under the agreement in April 2012. Community First had been ordered to submit a new capital plan and develop a plan for its uses of cash for debt service and operating expenses.

The August 2010 agreement for the $103 million-asset CSRA required it to serve as a source of strength for First State Bank and restricted it from paying dividends and redeeming stock and debt.

The $175 million-asset FMB Equibanc was hit with the agreement in April 2010, requiring it to serve as a source of strength for Farmers & Merchants Bank and restricting its dividend payments.

Valley Bancorp, the $304 million-asset holding company of Valley Bank & Trust, was required by its August 2009 agreement to submit a cash-flow projections report, and it was also hit with restrictions on dividend payments.

Andy Peters

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