Former branch manager prohibited by Fed order after violating bank lending policies

A former manager of the Banner Elk branch of Highlands Union Bank (Abingdon, Va.) is prohibited from any future involvement in the affairs of a federally insured depository institution under a consent order issued by the Federal Reserve Board, the central bank announced Thursday.

Bettie McGuire Shomaker, according to the consent order executed Tuesday, violated her bank’s lending policies for her own benefit. In 2017 and 2018, it states, she generated loans for relatives, did not send these loans to the bank’s loan operations department for booking, and used one of these loans for her own benefit.

Shomaker’s actions “constituted unsafe or unsound banking practices, demonstrated a reckless disregard for the safety and soundness of the Bank, and caused financial loss the Bank,” according to the order, which shows she resigned Jan. 31.

Federal Reserve Board issues enforcement action with former employee of Highlands Union Bank