Check out the new site
Here is Matt Brown, CEO
Matt took $10,000,000 of your money which he won’t pay back
Matt’s bank is on the problem bank list
This clown lost $10,343,000 in Q4 2011
Why does is Matt bald? Because he wipe out 90% of the equity in 90 days
How is that for Premier
This guy should be in jail
How is this dope going to pay back the $10,000,000 he stole from the tax payer?
This place took $10MM in tax payer money which it can’t pay back
This is Linda Plamer the CFO
Linda F$$cked the tax payer out of $10,000,000
They are on the problem bank list
Don’t worry, the $10MM is only monopoly money, they can’t pay it back
This is Al Basford Commercial Lender
This Idiot made $35,000,000 in junk loans
Hold on, they have $48MM in problem loans, $9MM in supposed equity and they owe the tax payer $10MM, go directly to park place
Premier Bank Tallahassee Florida was founded in 1995. The company took $10MM in tax payer funding, which they have decided to not give back. The company is on the problem bank list. They were cited for weakness in management, capital, earnings and liquidity. The Texas ratio is an incredible 119%.
Take a look at the real estate for sale on the website, this place likes to finance vacant land. That could be due to the weakness in management cited by the Feds.
That is a Premier bank.
Commercial Lenders
Brantley Henderson
Senior Vice President
Senior Commercial Lending Officerbhenderson@premier-bank.com
(850) 906-5726
(850) 508-2162 (mobile)
Erin Sjostrom
Senior Vice President
Senior Credit Officeresjostrom@premier-bank.com
(850) 383-4728
(850) 933-0627 (mobile)
Al Basford
Senior Vice Presidentabasford@premier-bank.com
(850) 906-5722
(850) 694-4104 (mobile)
Kaila Hardee
Vice Presidentkhardee@premier-bank.com
(850) 383-4734
(850) 933-6743 (mobile)
They have $357MM in assets with $19MM in stated equity.
The actual equity is $9MM, as the $10MM in tax payer funds is debt not equity.
The bank has $48MM in problem loans, $42MM of which is on non accrual.
The company has $48MM in bad loans with only $9MM in equity.
That is not Premier.
This place is bankrupt
Why hasn’t it been shut down.
This place is a disaster.
Do you have money in this place?
1
FEDERAL DEPOSIT INSURANCE CORPORATION
WASHINGTON, D.C.
STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION TALLAHASSEE, FLORIDA
In the Matter of
PREMIER BANK
TALLAHASSEE, FLORIDA
(Insured State Nonmember Bank)
))))))))))
CONSENT ORDER
FDIC-10-074b
OFR 0722 -FI-02/10
The Federal Deposit Insurance Corporation (“FDIC”) is the appropriate Federal
banking agency for Premier Bank, Tallahassee, Florida (“Bank”), under 12 U.S.C. §
1813(q).
The Bank, by and through its duly elected and acting Board of Directors
(“Board”), has executed a “Stipulation to the Issuance of a Consent Order”
(“STIPULATION”), dated May 4, 2010, that is accepted by the FDIC and the Florida
Office of Financial Regulation (“OFR”). The OFR may issue an order pursuant to
Chapter 120 and Section 655.033, Florida Statutes (2009).
With this Stipulation, the Bank has consented, without admitting or denying any
charges of unsafe or unsound banking practices or violations of law and/or regulation
relating to weaknesses in asset quality, earnings, management, capital, liquidity, and
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sensitivity to market risk, to the issuance of this Consent Order (“ORDER”) by the FDIC
and the OFR.
Having determined that the requirements for issuance of an order under 12 U.S.C.
§ 1818(b) and under Chapter 120 and Section 655.033, Florida Statutes have been
satisfied, the FDIC and the OFR hereby order that:
BOARD OF DIRECTORS
1. Beginning with the effective date of this ORDER, the Board shall increase its
participation in the affairs of the Bank, assuming full responsibility for the approval of
sound policies and objectives and for the supervision of all of the Bank’s activities,
consistent with the role and expertise commonly expected for directors of banks of
comparable size. The Board shall prepare in advance and follow a detailed written
agenda for each meeting, including consideration of the actions of any committees.
Nothing in the foregoing sentences shall preclude the Board from considering matters
other than those contained in the agenda. This participation shall include meetings to be
held no less frequently than monthly at which, at a minimum, the following areas shall be
reviewed and approved: reports of income and expenses; new, overdue, renewal, insider,
charged-off, and recovered loans; investment activity; operating policies; and individual
committee actions. Board minutes shall document these reviews and approvals,
including the names of any dissenting directors.
COMPLIANCE WITH ORDER
2. Within 30 days from the effective date of this ORDER, the Board shall establish a
Board committee (“Directors’ Committee”), consisting of at least five members, to
oversee the Bank’s compliance with the ORDER. Three of the members of the
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Directors’ Committee shall not be officers of the Bank. The Directors’ Committee shall
receive from Bank management monthly reports detailing the Bank’s actions with respect
to compliance with the ORDER. The Directors’ Committee shall present a report
detailing the Bank’s adherence to the ORDER to the Board at each regularly scheduled
Board meeting. Such report shall be recorded in the appropriate minutes of the Board’s
meeting and shall be retained in the Bank’s records. Establishment of this committee
does not in any way diminish the responsibility of the entire Board to ensure compliance
with the provisions of this ORDER.
MANAGEMENT
3. (a) Within 60 days from the effective date of this ORDER, the Bank shall
develop and approve a written analysis and assessment of the Bank’s management and
staffing needs (“Management Plan”). The Management Plan shall include, at a
minimum: (i) identification of both the type and number of officer positions
needed to properly manage and supervise the affairs of the Bank;
(ii) identification and establishment of such Bank committees as are
needed to provide guidance and oversight to active management;
(iii) annual written evaluations of all Bank officers, and staff members
to determine whether these individuals possess the ability, experience and other qualifications required to perform present and anticipated duties,
including, but not limited to, adherence to the Bank’s established policies
and practices, and restoration and maintenance of the Bank in a safe and
sound condition;
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(iv) a plan to recruit and hire any additional or replacement personnel
with the requisite ability, experience and other qualifications to fill those
officer or staff member positions consistent with the needs identified in
the Management Plan; and
(v) an organizational chart.
(b) Such Management Plan and its implementation shall be satisfactory to the Regional Director of the FDIC’s Atlanta Regional Office (“Regional Director”) and the
OFR (collectively, “Supervisory Authorities”).
(c) Within 90 days from the effective date of this ORDER, the Bank shall
have and retain qualified management with the qualifications and experience
commensurate with assigned duties and responsibilities at the Bank. Each member of
management shall be provided appropriate written authority from the Bank’s Board to
implement the provisions of this ORDER. At a minimum, management shall include the
following:
(i) a chief executive officer with proven ability in managing a bank of
comparable size and in effectively implementing lending, investment and
operating policies in accordance with sound banking practices;
(ii) a senior credit officer with a significant amount of appropriate
lending, collection, and loan supervision experience, and experience in
upgrading a low quality loan portfolio; and
(iii) a chief financial officer with a demonstrated ability in all financial
areas, including but not limited to, accounting, regulatory reporting,
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budgeting and planning, management of the investment function, liquidity
management and interest rate risk management.
(d) The qualifications of management shall be assessed on its ability to:
(i) comply with the requirements of this ORDER;
(ii) operate the Bank in a safe and sound manner;
(iii) comply with applicable laws and regulations; and
(iv) restore all aspects of the Bank to a safe and sound condition,
including, but not limited to, asset quality, capital adequacy, earnings,
management effectiveness, risk management, liquidity, and sensitivity to
market risk.
(e) During the life of this ORDER, the Bank shall notify the Supervisory
Authorities in writing, of the resignation or termination of any of the Bank’s directors or
senior executive officers. Prior to the addition of any individual to the Board or the
employment of any individual as a senior executive officer, or executive officer as that
term is defined in Subpart F of Part 303 of the FDIC Rules and Regulations, 12 C.F.R. §
303.101 and Section 655.005, Florida Statutes, the Bank shall comply with the
requirements of Section 32 of the Act, 12 U.S.C. § 1831i, and Subpart F of Part 303 of
the FDIC Rules and Regulations, 12 C.F.R. §§ 303.100-303.104; and Section 655.0385,
Florida Statutes, and Rule 69U-100.03852 Florida Administrative Code.
CAPITAL
4. (a) Within 90 days from the effective date of the ORDER, the Bank shall
achieve and maintain the following minimum capital levels as defined in Part 325 of the
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FDIC Rules and Regulations, 12 C.F.R. Part 325, after establishing an adequate
allowance for loan and lease losses (“ALLL”):
(i) Tier 1 capital at least equal to eight (8.0%) percent of total assets;
and
(ii) Total risk-based capital at least equal to twelve (12.0%) percent of
total risk-weighted assets.
(b) Thereafter during the life of this ORDER, the Bank shall maintain Tier 1
capital in such an amount as to equal or exceed eight (8%) percent of the Bank’s total
assets; and a Total risk-based capital ratio of at least twelve (12%) percent as those risk
based capital ratios are described in the FDIC Statement of Policy on Risk-Based Capital
contained in Appendix A to Part 325 of the FDIC Rules and Regulations, 12 C.F.R. Part
325, Appendix A.
(c) Within 30 days of the last day of each calendar quarter, the Bank shall
determine, from its Reports of Condition and Income, its capital ratios for that calendar
quarter. If any capital measure falls below the established minimum, within 30 days of
such required determination of capital ratios, the Bank shall submit a written plan to the
Supervisory Authorities, describing the means and timing by which the Bank shall
increase such ratios up to or in excess of the established minimum.
(d) The level of Tier 1 Capital to be maintained during the life of this ORDER
pursuant to paragraph 4(b) shall be in addition to a fully funded ALLL, the adequacy of
which shall be satisfactory to the Supervisory Authorities as determined at subsequent
examinations and/or visitations.
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(e) Any increase in Tier 1 Capital necessary to meet the requirements of
paragraphs 4(a) and 4(b) of this ORDER may be accomplished by the following:
(iii) sale of common stock; or
(iv) sale of noncumulative perpetual preferred stock; or
(v) direct contribution of cash by the Board, shareholders, and/or
parent holding company; or
(vi) any other means acceptable to the Supervisory Authorities; or
(vii) any combination of the above means.
Any increase in Tier 1 Capital necessary to meet the requirements of paragraphs 4(a) and
4(b) of this ORDER may not be accomplished through a deduction from the Bank’s
ALLL.
(f) If all or part of any necessary increase in Tier 1 Capital required by
paragraphs 4(a) and 4(b) of this ORDER is accomplished by the sale of new securities,
the Board shall forthwith take all necessary steps to adopt and implement a plan for the
sale of such additional securities, including the voting of any shares owned or proxies
held or controlled by them in favor of the plan. Should the implementation of the plan
involve a public distribution of the Bank’s securities (including a distribution limited only
to the Bank’s existing shareholders), the Bank shall prepare offering materials fully
describing the securities being offered, including an accurate description of the financial
condition of the Bank and the circumstances giving rise to the offering, and any other
material disclosures necessary to comply with the Federal securities laws. Prior to the
implementation of the plan and, in any event, not less than fifteen (15) days prior to the
dissemination of such materials, the plan and any materials used in the sale of the
8
securities shall be submitted to the FDIC, Division of Supervision and Consumer
Protection, Accounting and Securities Disclosure Section, 550 17th Street, N.W., Room
F-6066, Washington, D.C. 20429 and the Office of Financial Regulation, Division of
Financial Institutions, 200 East Gaines Street, Tallahassee, Florida 32399-0371, for
review. Any changes requested to be made in the plan or materials by the FDIC or the
OFR shall be made prior to their dissemination. If the increase in Tier 1 Capital is
provided by the sale of noncumulative perpetual preferred stock, then all terms and
conditions of the issue, including but not limited to those terms and conditions relative to
interest rate and convertibility factor, shall be presented to the Supervisory Authorities
for prior approval.
(g) In complying with the provisions of Paragraphs 4(a) and 4(b) of this
ORDER, the Bank shall provide to any subscriber and/or purchaser of the Bank’s
securities, a written notice of any planned or existing development or other changes
which are materially different from the information reflected in any offering materials
used in connection with the sale of Bank securities. The written notice required by this
paragraph shall be furnished within ten (10) days from the date such material
development or change was planned or occurred, whichever is earlier, and shall be
furnished to every subscriber and/or purchaser of the Bank’s securities who received or
was tendered the information contained in the Bank’s original offering materials.
(h) For the purposes of this ORDER, the terms “Tier 1 Capital” and “total
assets” shall have the meanings ascribed to them in Part 325 of the FDIC Rules and
Regulations, 12 C.F.R. Part 325.
9
CHARGE-OFF
5. (a) Within 30 days from the effective date of this ORDER, the Bank shall
eliminate from its books, by charge-off or collection, all assets or portions of assets
classified “Loss” and 50 percent of those assets classified “Doubtful” in the FDIC Report
of Examination dated October 13, 2009 (“Report”) that have not been previously
collected or charged-off. (If an asset classified “Doubtful” is a loan or lease, the Bank
may, in the alternative, increase its ALLL by an amount equal to 50 percent of the loan or
lease classified “Doubtful”.)
(b) Additionally, while this ORDER remains in effect, the Bank shall, within
30 days from the receipt of any official Report of Examination of the Bank from the
FDIC or the OFR, eliminate from its books, by collection, charge-off, or other proper
entries, the remaining balance of any asset classified “Loss” and 50 percent of the those
classified “Doubtful” unless otherwise approved in writing by the Supervisory
Authorities.
RESTRICTIONS ON CERTAIN PAYMENTS
6. (a) While this ORDER is in effect, the Bank shall not declare or pay
dividends or bonuses without the prior written approval of the Supervisory Authorities.
All requests for prior approval shall be received at least 30 days prior to the proposed
dividend or bonus payment declaration date (at least 5 days with respect to any request
filed within the first 30 days after the date of this ORDER) and shall contain, but not be
limited to, an analysis of the impact such dividend or bonus payment would have on the
Bank’s capital, income, and/or liquidity positions.
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(b) During the term of this ORDER, the Bank shall not make any distributions
of interest, principal or other sums on subordinated debentures, if any, without the prior
written approval of the Regional Director.
ALLOWANCE FOR LOAN AND LEASE LOSSES
7. (a) Immediately upon the issuance of this ORDER, the Board shall make a
provision to replenish the ALLL which, as of the date of the examination, is underfunded
as set forth on page 2 of the Report.
(b) Within 30 days from the effective date of this ORDER, the Board shall
review the adequacy of the ALLL and establish a comprehensive policy for determining
the adequacy of the ALLL. For the purpose of this determination, the adequacy of the
ALLL shall be determined after the charge-off of all loans or other items classified
“Loss.” The policy shall provide for a review of the ALLL at least once each calendar
quarter. Said review shall be completed in time to properly report the ALLL in the
quarterly Reports of Condition and Income. The review shall focus on the results of the
Bank’s internal loan review, loan and lease loss experience, trends of delinquent and nonaccrual
loans, an estimate of potential loss exposure of significant credits, concentrations
of credit, and present and prospective economic conditions. A deficiency in the ALLL
shall be remedied in the calendar quarter it is discovered, prior to submitting the Reports
of Condition and Income, by a charge to current operating earnings. The minutes of the
Board meeting at which such review is undertaken shall indicate the results of the review.
The Bank’s policy for determining the adequacy of the ALLL and its implementation
shall be satisfactory to the Supervisory Authorities.
11
BROKERED DEPOSITS
8. (a) Throughout the effective life of this ORDER, the Bank shall not accept,
renew, or rollover any brokered deposit, as defined by 12 C.F.R. § 337.6(a)(2), unless it
is in compliance with the requirements of 12 C.F.R. § 337.6(b), governing solicitation
and acceptance of brokered deposits by insured depository institutions.
(b) The Bank shall comply with the restrictions on the effective yields on
deposits as described in 12 CFR § 337.6.
FUNDS MANAGEMENT PLAN
9. (a) Annually during the life of this ORDER, the Bank shall review its written
plan addressing liquidity, contingent funding, and asset liability management for
adequacy and, based upon such review, shall make appropriate revisions, if any, to the
plan that are necessary to strengthen funds management procedures and maintain
adequate provisions to meet the Bank’s liquidity needs.
(b) The Bank’s plan shall include, at a minimum: (i) a limitation on the ratio of the Bank’s total loans to assets;
(ii) identification of a desirable range and measurement of dependence
on non-core funding;
(iii) establishment of lines of credit that would allow the Bank to
borrow funds to meet depositor demands if the Bank’s other provisions for
liquidity proved inadequate;
(iv) a requirement for retention of sufficient investments that can be
promptly liquidated to ensure the maintenance of the Bank’s liquidity
posture at a level consistent with short-term and long-term objectives;
12
(v) establishment of contingency plans to restore liquidity to that amount called for in the Bank’s liquidity policy; and
(vi) establishment of limits for borrowing federal funds and other
funds, including limits on dollar amounts, maturities, and specified
sources/lenders.
REDUCTION OF CLASSIFIED ITEMS
10 . (a) Within 60 days from the effective date of this ORDER, the Bank shall
formulate a written plan to reduce the Bank’s risk exposure in each asset in excess of
$500,000 classified as “Substandard” or “Doubtful” in the Report. In developing the plan
mandated by this paragraph, the Bank shall, at a minimum, with respect to each adversely
classified loan, review, analyze, and document the financial position of the borrower,
including source of repayment, repayment ability, and alternative repayment sources, as
well as the value and accessibility of any pledged or assigned collateral, and any possible
actions to improve the Bank’s collateral position.
(b) Within 60 days from the effective date of this ORDER, the Bank shall
formulate a written plan to reduce the aggregate balance of assets classified
“Substandard” and “Doubtful” in the Report in accordance with the following schedule:
(i) within 90 days from the effective date of this ORDER, the Bank
shall have reduced the items classified “Substandard” or “Doubtful” in the
Report by ten percent (10.0%);
(ii) within 180 days from the effective date of this ORDER, the Bank
shall have reduced the items classified “Substandard” or “Doubtful” in the
Report by twenty percent (20.0%);
13
(iii) within 270 days from the effective date of this ORDER, the Bank
shall have reduced the items classified “Substandard” or “Doubtful” in the
Report by thirty percent (30.0%); and
(iv) within 360 days from the effective date of this Order, the Bank
shall have reduced the items classified “Substandard” or “Doubtful” in the
Report by forty-five percent (45.0%).
(c) Within 60 days from the effective date of this ORDER, the Bank shall
submit the plans required in paragraphs 10(a) and 10(b) to the Supervisory Authorities
for review and comment. Within 30 days from the receipt of any comment from the
Supervisory Authorities, and after due consideration of any recommended changes, the
Bank shall approve the plans, which approval shall be recorded in the minutes of the
meeting of the Board. Thereafter, the Bank shall implement and fully comply with the
plans. Such plans shall be monitored and progress reports thereon shall be submitted to the Supervisory Authorities at 90-day intervals concurrently with the other reporting
requirements set forth in paragraph 23 of this ORDER.
(d) The requirements of this paragraph are not to be construed as standards for
future operations and following compliance with the above reduction schedule, the Bank
shall continue to reduce the total volume of adversely classified assets. As used in
subparagraphs 10(a) and 10(b) the word “reduce” means:
(i) to collect;
(ii) to charge-off; or
(iii) to sufficiently improve the quality of assets adversely classified to
warrant removing any adverse classification, as determined by the
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Supervisory Authorities.
NO ADDITIONAL CREDIT TO CERTAIN BORROWERS
11. (a) Beginning with the effective date of this ORDER, the Bank shall not
extend, directly or indirectly, any additional credit to, or for the benefit of, any borrower
who has a loan or other extension of credit from the Bank that has been charged off or
classified, in whole or in part, “Loss” or “Doubtful” and is uncollected. The
requirements of this paragraph shall not prohibit the Bank from renewing (after collection
in cash of interest due from the borrower) any credit already extended to any borrower.
(b) Additionally, during the life of this ORDER, the Bank shall not extend,
directly or indirectly, any additional credit to, or for the benefit of, any borrower who has
a loan or other extension of credit from the Bank that has been classified, in whole or
part, “Substandard”, or is listed for “Special Mention” and is uncollected.
(c) Paragraph 11(b) shall not apply if the Bank’s failure to extend further
credit to a particular borrower would be detrimental to the best interests of the Bank.
Prior to the extending of any additional credit pursuant to this paragraph, either in the
form of a renewal, extension, or further advance of funds, such additional credit shall be
approved by a majority of the Board or a designated committee thereof, who shall certify
in writing as follows:
(i) why the failure of the Bank to extend such credit would be
detrimental to the best interests of the Bank;
(ii) that the Bank’s position would be improved thereby; and
(iii) how the Bank’s position would be improved.
15
(d) The signed certification shall be made a part of the minutes of the Board
or its designated committee and a copy of the signed certification shall be retained in the
borrower’s credit file.
SPECIAL MENTION
12. Within 60 days from the effective date of this ORDER, the Bank shall develop
and submit to Supervisory Authorities for review and comment a plan to correct the cited
deficiencies in the loans listed for “Special Mention” in the Report. Within 30 days from receipt of any comment from the Supervisory Authorities, and after due consideration of
any recommended changes, the Bank shall approve the plan, which approval shall be
recorded in the minutes of the Board meeting. Thereafter, the Bank shall implement and
fully comply with the plan
CONCENTRATIONS OF CREDIT
13. Within 60 days from the effective date of this ORDER, the Bank shall perform a
risk segmentation analysis with respect to the commercial real estate concentrations of
credit listed on the Concentrations page of the Report. The Bank should refer to the
Financial Institution Letter 104-2006 dated December 12, 2006, entitled Concentrations
in Commercial Real Estate Lending, Sound Risk Management Practices, for information
regarding risk segmentation analysis. A copy of this analysis shall be provided to the
Supervisory Authorities. The Bank agrees to develop a plan to reduce any segment of the
portfolio which the Supervisory Authorities deem to be an undue concentration of credit
in relation to the Bank’s capital account. The plan and its implementation shall be in a
form and manner acceptable to the Supervisory Authorities as determined at subsequent
examinations and/or visitations.
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LENDING AND COLLECTION POLICIES
14. (a) Within 60 days from the effective date of this ORDER, the Bank shall
develop, revise, adopt, and implement written lending and collection policies to provide
effective guidance and control over the Bank’s lending function. Such policies and their
implementation shall be in a form and manner acceptable to the Supervisory Authorities.
(b) The initial revisions to the Bank’s loan policy and practices, required by
this paragraph, at a minimum, shall include the following:
(i) revisions to address criticisms and recommendations enumerated
on pages 7-8 of the Report;
(ii) provisions, consistent with FDIC instructions for the preparation of
Reports of Condition and of Income, under which the accrual of interest
income is discontinued and previously accrued interest is reversed on
delinquent loans; and
(iii) provisions which require complete loan documentation, realistic
repayment terms, and current credit information adequate to support the
outstanding indebtedness of the borrower. Such documentation shall
include current financial information, profit and loss statements or copies
of tax returns and cash flow projections.
(c) The Board shall adopt procedures whereby officer compliance with the
revised loan policy is monitored and responsibility for exceptions thereto assigned. The
procedures adopted shall be reflected in the minutes of a Board meeting at which all
members are present and the vote of each is noted.
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INTERNAL LOAN REVIEW
15. Within 60 days from the effective date of this ORDER, the Bank shall adopt an
effective internal loan review and grading system to provide for the periodic review of
the Bank’s loan portfolio in order to identify and categorize the Bank’s loans, and other
extensions of credit which are carried on the Bank’s books as loans, on the basis of credit
quality. Such system and its implementation shall be satisfactory to the Supervisory
Authorities as determined at their initial review and at subsequent examinations and/or
visitations. At a minimum, the grading system shall provide for the following:
(a) specification of standards and criteria for assessing the credit quality of the
Bank’s loans;
(b) application of loan grading standards and criteria to the Bank’s loan
portfolio;
(c) categorization of the Bank’s loans into groupings based on the varying
degrees of credit and other risks that may be presented under the applicable grading
standards and criteria, but in no case, will a loan be assigned a rating higher than that
assigned by examiners at the last examination of the Bank without prior written
notification to the Supervisory Authorities; (d) identification of any loan that is not in conformance with the Bank’s loan
policy; and
(e) requirement of a written report to be made to the Board and audit
committee, not less than quarterly after the effective date of this ORDER. The report
shall identify the status of those loans that exhibit credit and other risks under the
18
applicable grading standards/criteria and the prospects for full collection and/or
strengthening of the quality of any such loans.
STRATEGIC PLAN
16. (a) Within 90 days from the effective date of this ORDER, the Bank shall
prepare and submit to the Supervisory Authorities for review and comment an update to
the Bank’s existing business/strategic plan covering the overall operation of the Bank. At
a minimum the plan shall establish objectives for the Bank’s earnings performance,
growth, balance sheet mix, liability structure, capital adequacy, and reduction of
nonperforming and underperforming assets, together with strategies for achieving those
objectives. The plan shall also identify capital, funding, managerial and other resources
needed to accomplish its objectives. Such plan shall specifically provide for the
following:
(i) goals for the composition of the loan portfolio by loan type
including strategies to diversify the type and improve the quality of loans
held;
(ii) goals for the composition of the deposit base including strategies to
reduce reliance on volatile and costly deposits; and
(iii) plans for effective risk management and collection practices.
(b) Within 30 days from the receipt of any comments from the Supervisory
Authorities, and after due consideration of any recommended changes, the Board shall
approve the business/strategic plan, which approval shall be recorded in the minutes of a
Board meeting.
19
PROFIT PLAN
17. (a) Within 90 days from the effective date of this ORDER, the Bank shall
formulate and implement a written plan to improve and/or sustain Bank earnings. This
plan shall be forwarded to the Supervisory Authorities for review and comment and shall
address, at a minimum, the following:
(i) goals and strategies for improving and sustaining the earnings of
the Bank;
(ii) the major areas in, and means by which the Bank will seek to
improve the Bank’s operating performance;
(iii) realistic and comprehensive budgets;
(iv) a budget review process to monitor the income and expenses of the
Bank to compare actual figures with budgetary projections;
(v) the operating assumptions that form the basis for, and adequately
support, major projected income and expense components; and
(vi) coordination of the Bank’s loan, investment, and operating policies
and budget and profit planning with the funds management policy.
(b) Following the end of each calendar quarter, the Board shall evaluate the
Bank’s actual performance in relation to the plan required by this paragraph and shall
record the results of the evaluation, and any actions taken by the Bank in the minutes of
the Board meeting at which such evaluation is undertaken.
(c) Thereafter, the Bank shall formulate such a plan and budget by November
30 of each subsequent year. These plans and budgets shall be submitted to the
20
Supervisory Authorities for review and comment by December 15 of each subsequent
year.
INTEREST RATE RISK MANAGEMENT
18. Within 60 days from the effective date of this ORDER, the Bank shall develop
and implement a written policy for managing interest rate risk in a manner that is
appropriate to the size of the Bank and the complexity of its assets. The policy shall
comply with the Joint Agency Policy Statement on Interest Rate Risk and Financial
Institution Letter 02-2010 entitled Financial Institution Management of Interest Rate
Risk, shall be consistent with the comments and recommendations detailed in the Report
and shall include, at a minimum, the means by which the interest rate risk position will be
monitored, the establishment of risk parameters, and provision for periodic reporting to
management and the Board regarding interest rate risk with adequate information
provided to assess the level of risk. Such policy and its implementation shall be
satisfactory to the Supervisory Authorities.
VIOLATIONS OF LAWS AND REGULATIONS
19. Within 60 days from the effective date of this ORDER, the Bank shall eliminate
and/or correct all violations of law and regulation, which are more fully set out in the
Report. In addition, the Bank shall take all necessary steps to ensure future compliance
with all applicable laws and regulations.
CONFLICTS OF INTEREST
20. Within 30 days from the effective date of this ORDER, the Bank shall develop,
adopt, and implement written policies and procedures designed to bring to the attention of
each member of the Board conflicts of interest which may exist in approving loans or
21
other transactions in which officers, directors or principal shareholders of the Bank
(“Insiders”) are involved. Such policies and procedures shall, at a minimum, ensure that
each member of the Board has been apprised of any potential conflict prior to making a
decision, or acting specifically on any loan or other transaction in which Insiders and/or
their business associates are, directly or indirectly, involved. The results of any
deliberations by the Board regarding potential conflicts shall be reflected in the minutes
of its meetings.
NO MATERIAL GROWTH WITHOUT NOTICE
21. While this ORDER is in effect, the Bank shall notify the Supervisory Authorities
at least 60 days prior to undertaking asset growth to ten percent (10%) or more per annum
or initiating material changes in asset or liability composition. In no event shall asset
growth result in noncompliance with the capital maintenance provisions of this ORDER
unless the Bank receives prior written approval from the Supervisory Authorities.
DISCLOSURE
22. Following the effective date of this ORDER, the Bank shall send to its shareholders
or otherwise furnish a description of this ORDER in conjunction with the Bank’s next
shareholder communication and also in conjunction with its notice or proxy statement
preceding the Bank’s next shareholder meeting. The description shall fully describe the
ORDER in all material respects. The description and any accompanying communication,
statement, or notice shall be sent to the FDIC, Division of Supervision and Consumer
Compliance, Accounting and Securities Disclosure Section, 550 17th Street, N.W., Room
F-6066, Washington, D.C. 20429 and to the OFR, Division of Financial Institutions, 200
East Gaines Street, Tallahassee, FL 32399-0371, at least fifteen (15) days prior to
22
dissemination to shareholders. Any changes requested to be made by the FDIC and the
OFR shall be made prior to dissemination of the description, communication, notice, or
statement.
PROGRESS REPORTS
23. (a) Within 45 days from the end of the first quarter following the effective
date of this ORDER, and within 45 days of the end of each quarter thereafter, the Bank
shall furnish written progress reports to the Supervisory Authorities detailing the form
and manner of any actions taken to secure compliance with this ORDER and the results
thereof. Such reports shall include a copy of the Bank’s Reports of Condition and
Income.
(b) Such reports may be discontinued when the corrections required by this
ORDER have been accomplished and the Supervisory Authorities have released the Bank
in writing from making further reports.
(c) All progress reports and other written responses to this ORDER shall be
reviewed by the Board and made a part of the minutes of the appropriate Board meeting.
The provisions of this ORDER shall not bar, estop, or otherwise prevent the
FDIC, the OFR, or any other federal or state agency or department from taking any other
action against the Bank or any of the Bank’s current or former institution-affiliated
parties.
This ORDER shall be effective on the date of issuance.
The provisions of this ORDER shall be binding upon the Bank, its institutionaffiliated
parties, and any successors and assigns thereof.
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The provisions of this ORDER shall remain effective and enforceable except to
the extent that, and until such time as, any provisions of this ORDER shall have been
modified, terminated, suspended, or set aside in writing.
Issued Pursuant to Delegated Authority.
Dated this 5th day of May, 2010.
/s/
By: ________________________
Thomas J. Dujenski
Regional Director
Division of Supervision and Consumer Protection
Atlanta Region
Federal Deposit Insurance Corporation
The Commissioner of the OFR having duly approved the foregoing ORDER, and
the Bank, through its Board, agree that the issuance of said ORDER by the FDIC shall be
binding as between the Bank and the OFR to the same degree and to the same legal effect
that such ORDER would be binding if the OFR had issued a separate ORDER that
included and incorporated all of the provisions of the foregoing ORDER, pursuant to
Chapters 120, 655, and 658, Florida Statutes (2009), including specifically Sections
655.033 and 655.041, Florida Statutes.
Dated this 4th day of May, 2010.
/s/ _______________________________ Linda B. Charity
Director Division of Financial Institutions
Office of Financial Regulation
By Delegated Authority for the Commissioner, Office of Financial Regulation
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Tags: deliquency, executives paid despite non payment of bailout fund, FDIC Bankrupt, Non repayment of Gov. bailout funds, problem bank list, real estate
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