The Federal Reserve Board has terminated enforcement actions issued in 2010 against American Bank of Baxter Springs in Kansas and CB Financial in Wilson, N.C., and issued one against Hazard Bancorp in Kentucky.
The action against the $91 million-asset American Bank was terminated on March 4. It required American to submit plans on board oversight, management review, liquidity and credit risk management, earnings and capital. The bank was also ordered to eliminate all assets or portions of assets classified as "loss" from its books within the first 30 days after the agreement, and then charge off other losses. It was also barred from incurring debt and repurchasing or redeeming any shares of its stock without prior approval from the Fed.
CB Financial, the holding company for the $105 million-asset Cornerstone Bank, agreed to take steps to strengthen the subsidiary, including complying with the company's consent order from February 2010 with the Federal Deposit Insurance Corp. That order was terminated in November; the Fed action was terminated on March 3.
CB also was barred from incurring debt and repurchasing or redeeming any shares of its stock without the Fed's approval.
Hazard Bancorp, the holding company for the $278 million-asset Peoples Bank and Trust Company of Hazard, agreed to improve capital, board oversight, lending administration, credit administration and credit risk management. It must submit a plan to improve its asset position, including steps to handle loans in excess of $150,000 that are more than 90 days past due.
Hazard is further required to charge off any assets classified as a loss without approval from the Fed and the Kentucky Department of Financial Institutions.