A civil money penalty over a “pattern or practice” of violations of the central bank’s flood insurance rules and, separately, a written agreement calling for a bank to strengthen board oversight and management were announced Thursday by the Federal Reserve Board.
The Fed, in an April 16 consent order, assessed a $9,500 civil money penalty on Yellowstone Bank, Laurel, Mont., over findings the bank violated the Fed’s Regulation H, which implements requirements of the National Flood Insurance Act. (Penalties may not exceed $2,252 for each violation, the order states.)
An April 20 written agreement among Iowa Prairie Bank (Brunsville, Iowa), the Federal Reserve Bank of Chicago and the Iowa banking superintendent calls for strengthened board oversight and management at the bank as well as improvements in credit risk management, assets (including disposition of assets exceeding $150,000, including other real estate owned), the allowance for loan and lease losses, its capital plan, business plan and budget, regulatory reporting, compliance with laws and regulations, and more. The bank may not declare or pa any dividends without prior approval of the Fed and the state regulator.