The Federal Deposit Insurance Corp. said it has issued a cease-and- desist order against Victory State Bank, Columbia, S.C.
The $16 million-asset bank was cited for operating practices that "are detrimental to the bank and jeopardize the safety of its deposits" and for engaging in unsafe lending practices.
Victory was advised to retain qualified management, review the salaries and bonuses paid to all officers and directors, and clarify its lending policies. It was also instructed not to compensate president and chief executive officer Timothy R. McConnell more than $100,000 annually for as long as the order is in place.
A spokesman for the regulator said he could not expand on what is contained in the order, which it announced last week. Mr. McConnell did not return calls seeking comment.