The Federal Reserve Board on Thursday announced it had terminated enforcement actions issued in 2011 and 2009, respectively, against bank holding companies Community Banks of Georgia, Inc. (CBGI) of Jasper, Ga., and Grand Mountain Bancshares, Inc., of Granby, Colo.
Under a Fed order dated May 24, 2011, CBGI agreed to take steps to maintain the financial soundness of and to serve as a “source of strength” for its subsidiary, Community Bank of Pickens County, a state-chartered nonmember bank. Part of the agreement was that CBGI ensure that the bank comply with a consent order entered into with the Federal Deposit Insurance Corp. (FDIC) and the state’s banking commissioner June 11, 2010. The holding company was prohibited from, among other things, taking dividends or any other form of payment that would reduce the bank’s capital without prior written approval of regulators. The enforcement order was terminated this July 10.
The agreement with Grand Mountain Bancshares was signed Nov. 9, 2009, with the now-defunct Office of Thrift Supervision (OTS). Under the agreement, Grand Mountain Bancshares and its directors, officers, employees and agents were ordered to “cease and desist from any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling or the aiding and abetting of unsafe or unsound practices that resulted in deteriorating asset quality, ineffective risk management practices, and inadequate oversight and supervision of the lending function” of the bank. The company was also required to submit a plan to build the bank’s capital and, among other things, was restricted from making capital distributions or repurchasing stock without prior approval of regulators. The order was terminated by the Fed this June 29.
Federal Reserve Board issues termination of enforcement actions with Community Banks of Georgia, Inc., and Grand Mountain Bancshares, Inc.