Federal regulators have fined First Southern Bank (FSOF) in Boca Raton, Fla., for violating the National Flood Insurance Act.
First Southern failed to verify that its residential or commercial borrowers who reside in flood prone areas held adequate insurance policies, the Federal Reserve said in an enforcement action.
A normal violation of the Flood Insurance Act carries a $2,000 fine. But the Federal Reserve Board assessed a $4,000 penalty against First Southern.
The Fed said that First Southern has "consented to the issuance of this order and will comply with each and every provision."
First Southern is a state-chartered bank that had $1 billion of assets at March 31, according to the Federal Deposit Insurance Corp. It was bought by CenterState Bank (CSFL) in Davenport, Fla., this month for $196 million.
"These findings date back to 2013, and the officials at First Southern Bank were able to settle and pay the fine in May of 2014, which was prior to our purchase of First Southern," Cindy Robbins, CenterState's chief retail banking officer, said in an email.