WASHINGTON -- The Office of the Comptroller of the Currency has barred Jimmy E. Nix, the former majority shareholder, and Gene Garrison, the former chief executive of First Community Bank of Alice, Tex., from all banking activities.
Mr. Nix and Mr. Garrison consented to permanent removals and agreed to pay civil penalties of $25,000 and $17,500, respectively.
The regulator said Mr. Garrison made loans to Mr. Nix that exceeded the bank's legal lending limit. In 1990, the bank lent $2.5 million to Mr. Nix and affiliated entities, when the lending limit was $500,000 per borrower.
Mr. Nix agreed to repay all principal and interest on the loans, the OCC said. If he fails to repay, he will be assessed a $1.95 million penalty.
Mr. Nix controlled 68% of the bank's stock as a voting representative of a voting trust. He resigned that position in 1990. Mr. Garrison resigned in Januay 1991.
First Community had $24 million in assets at the end of 1991 and lost $318,000 that year.