Kansas bank sees enforcement action terminated

An enforcement action has been terminated against Cornerstone Bancshares, Inc., of Overland Park, Kansas, the Federal Reserve said Tuesday. The action was first imposed in 2010.

Under the consent agreement signed in 2010 by the bank, Cornerstone agreed (among other things) to take steps to strengthen credit risk management practices, improve its assets, address its allowance for loan losses and leases (by eliminating from its books, by charge-off or collection, all assets or portions of assets classified “loss” in its exam report that had not been previously collected in full or charged off), and develop an earnings plan and budget.

The consent agreement was signed Feb. 8

Federal Reserve, Cornerstone Bancshares, Inc., enforcement action from January 2010