Fed terminates order against Cogent Bancorporation (previously Pinnacle BHC)

An enforcement order from August 2011 against Cogent Bancorporation, Inc. – formerly known as Pinnacle Bank Holding Company Inc. – of Orange City, Fla., was terminated last Friday by the Federal Reserve Board, the Fed said in an announcement Tuesday.

The 2011 agreement required the holding company’s board to take steps to “fully utilize” the firm’s financial and managerial resources to serve as a source of strength for subsidiary Pinnacle Bank (as required by the Fed’s Regulation Y), to include ensuring that the bank complied with a July 7, 2010, consent order with the Federal Deposit Insurance Corp. and the Florida Office of Financial Regulation “and any other supervisory action taken by the Bank’s federal or state regulator.”

Additionally, the holding company was required to obtain Fed approval before it paid any dividends, incurred debt, or redeemed stock; to comply with regulatory notice provisions regarding senior executive officer changes; and to comply with rules restricting indemnification and severance payments to institution-affiliated parties.

Federal Reserve Board announces termination of enforcement action with Cogent Bancorporation, Inc.