Order terminated 2-8-74 following examinations which disclosed improvements, and full or substantial compliance with all corrective provisions. Bank No. 17.-Deposits-$1,309,000 Cease and Desist order entered on 12-18-72. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to an excessive volume of classified loans, inadequate capital and poor liquidity resulting from expansionary and liberal policies of inexperienced management/ ownership. The bank was in substantial compliance with the order at the latest examination but the order remains outstanding. Bank No. 18.-Deposits-$2,528,000 Cease and Desist order entered on 2-12-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to excessive adversely classified loans, and an inadequate capital structure which developed as a result of liberal lending policies and the weak management ability of ownership and its subservient staff. Order terminated 2-11-75 following substantial improvement in the bank's asset-capital condition. Bank No. 19.-Deposits-$28,025,000 Cease and Desist order entered 4-23-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to heavy and severe adverse classifications of loans extended to a group of related construction firms which resulted in violations of law, heavy losses, deterioration of other segments of the loan portfolio, and capital inadequacy. Order terminated 12-23-74 following the elimination of the adversely classified concentrations of credit and the injection of new capital funds. Bank No. 20.-Deposits-$3,829,000 Cease and Desist order entered 5-21-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to excessive risk in the loan account, a declining level of capital protection, deficit earnings resulting from heavy loan losses and other problems stemming from a management dispute resulting in the resignation of three directors including the former executive officer. The order to cease and desist included requirements for management improvements, rehabilitation of asset condition, a capital improvement program, and adoption of written lending and internal operating policies. Recommendation for termination in process, based on substantial compliance with order. Bank No. 21.-Deposits-$3,057,000 Cease and Desist order entered 6-25-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to excessive adversely classified credits involving several out-of-area and/or selfserving loans, potential losses from irregularities, and inadequate capital protection. Order terminated 8-11-75 as conditions were fulfilled including the injection of new equity capital. Bank No. 22.-Deposits-$2,913,000 Cease and Desist order entered 7-31-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to unsound securities transactions and excessive municipal bond holdings which threatened the solvency of the bank through the resulting market depreciation, illiquid position and trading losses incurred. Bank was found in substantial compliance with the order at subsequent examinations but the order remains outstanding. Bank No. 23.-Deposits-$5,466,000 Cease and Desist order entered 7-31-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to the failure to comply with Federal Reserve Regulation Z. Order terminated 11-26–75 after bank was found to be in compliance with the order. Bank No. 24.-Deposits-$51,573,000 Cease and Desist order entered 9-24-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to providing acceptable management, implementing and maintaining lending, investment, and operating policies in accord with sound banking practices, conforming to all applicable laws, rules, regulations, and reducing the excessive volume of weak credits. Order terminated 11-26-75 when the bank was found to be in compliance with the order. Bank No. 25.-Deposits-$4,136,000 Cease and Desist order entered 10-15-73. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to high volume of adversely classified loans, an excessive delinquency ratio, continued violations of laws and regulations, and deteriorated capital adequacy which resulted from the increasingly liberal lending policies of the controlling stockholder and executive officer, coupled with a complacent directorate and incompetent staff. Order terminated 9-2-75 following improvements in asset quality, substantial compliance with requirements included in the order to cease and desist, and the revitalization of sincere concern to effect improvements by the staff and directorate. Bank No. 26.-Deposits-$13,887,000 Cease and Desist order entered 1-29-74. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to excessive loan classifications, inept and self-serving management, violations of law, concentrations of credit, and uncontrolled expenses. Order terminated 7-24-74 following the sale of control of the bank to a new group and injection of capital funds. Bank No. 27.-Deposits-$3,911,000 Cease and Desist order entered 4-11-74. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to serious asset problems which developed as total loan volume was rapidly expanded, capital inadequacy developed as the loan portfolio deteriorated in credit quality, hazardous lending and collection policies, and violations of laws and regulations. Termination was recommended on 1-8-76 when the bank was found to be in substantial compliance; however, due to the illness of the bank's chief executive officer the termination recommendation has been held in abeyance. Bank No. 28.-Deposits-$2,857,000 Cease and Desist order entered on 6-7-74. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to the heavy volume of adverse classifications, speculative land contracts to out-ofterritory borrowers, lack of sound lending, investment and operating policies, and an inadequate capital structure. Bank subsequently closed. Bank No. 29.-Deposits-$49,542,000 Cease and Desist order entered 6-11-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to the large volume of adversely classified loans which far exceeded capital and reserves, and centered in two massive concentrations of credit. Other weaknesses consisted of an overloaned and illiquid position, inadequate capital protection, and numerous, frequent and flagrant violations. The order has been substantially complied with although the injection of new capital funds remains to be accomplished. Management officials and their attorneys continue to contest the order. The order remains outstanding. Bank No. 30.-Deposits-$15,114,000 Cease and Desist order entered 10-15-74. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to the massive volume of weak loans, and loan losses taken in recent years, an inadequate margin of capital protection, an overloaned and illiquid position, poor earnings, and a pattern of numerous and repeated violations. The bank is in substantial compliance with the order and a recommendation to terminate the action is in process. Bank No. 31.-Deposits-$18,380,000 Cease and Desist order entered 3-26-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to unauthorized and unlawful acts by its officers, directors or employees, including the exceeding of lending limits and the acceptance of securities collateral without observing prudent banking practices to prepare for the lawful and orderly disposition of such securities in the event such disposition became necessary. Order outstanding. Bank No. 32.-Deposits-$9,924,000 respect to providing accepta classified assets, correction of a ve pliance with an internal audit pro all applicable laws, rules and reg. written loan policy. The most recent examinations of substantial compliance with the agree is being reviewed in the Review Section mending that the agreement be termina status issued 11-21-72. Bank was I ordered to provide acceptable d assets, obtain supporting to its written loan policies, bital funds if continued ntial compliance with Bank No. 2.-Deposits-$13,957,90 Written agreement entered into on 3-2-72. correction of unsafe and unsound practices to d to providing acceptable management, eliminati. assets, adoption of and compliance with a .... capital, establishment of an unearned income asos with an internal audit program, correction of aw correction of and future compliance with all app.tac The agreement is outstanding; however, the 7-14 indicates the bank appears to be in substantial comp..p Bank No. 3.-Deposits-$1,958,000 1 73. Bank was te or reduce violations of Vired. Written agreement entered into on 2-14-73. Bank fecting correction of unsafe and unsound practices to take respect to the controlling shareholder purchasing for a period date and within 60 days after the completion of any bank, any loan which was classified Loss or Doubtful in op. nated in the controlling shareholder's chain of banks, other to and any loan held by and originating outside subject barxth and subject bank was to divest itself of any loan originated a trolling shareholder's banks which were held in subject bank that su fied Substandard at another of the affiliated banks and purchase The agreement is outstanding, however, stock control has changie m recent examination as of 2-27-76 is being processed in the Rego indicates substantial compliance. Consideration is being given by the Office to recommend termination of the agreement. ice with by the APPENDIX C-2.-FEDERAL DEPOSIT INSURANCE CORPORATION FEDERAL born. INSURANCE ACT-SECTION 8(a) Actions to Terminate Insured Status) Attached is a case-by-case summary of 19 Termination of Insurance issued by the Corporation since January 1971. It should be noted that ev such actions are now in various stages of processing. In addition to the listing, it should also be noted a number of other Terminato of Insurance actions have been recommended but were withdrawn prior to a by our Board because of favorable interim affirmative actions on the part of toy the banks or management-shareholders. As in the case of Cease and Desiat actiona the threat of Termination of Insurance has caused many favorable affirmative action programs on the part of banks which negated the need for finalizing the actions. SUMMARY Bank No. 1-Deposits-$11,143,000 Notice of Intention to Terminate Insured Status issued 1-22-71. Bank was found in an unsafe and unsound condition and ordered to provide an active and capable management, eliminate by charge-off or otherwise certain classified assets, correct all violations of law listed in the report of examination, and to adopt and strictly follow written loan policies if continued insured status was desired. The action was terminated 6-30-71 when subject was merged with another bank. Bank No. 2.-Deposits-$13,419,000 Notice of Intention to Terminate Insured Status issued 3-12-71. Bank was found in an unsafe and unsound condition and ordered to provide an active and capable management, eliminate from its books certain assets, by charge-off or otherwise, correct all violations of law listed in the examination report, adopt and strictly follow written loan policies, pay no cash dividends without the prior consent of the Banking Commissioner and the FDIC, reduce the loan-to-deposit ratio, not accept or acquire, directly or indirectly, brokered deposits, eliminate from Cease and Desist order entered 5-9-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to acceptable management, reduction of adversely classified assets and loan volume, adherence to loan policy, compliance with laws, rules and regulations, loan documentation, internal routine and controls, injection of new capital funds, and discontinuance of cash dividends. Order outstanding. Bank No. 33.-Deposits-$7,202,000 Cease and Desist order entered on 5-9-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to acceptable management, reduction of adversely classified assets, curtailment of loans to insiders, injection of new capital, reduction of borrowings and loan volume, compliance with laws, rules and regulations and loan policy, and discontinuance of cash dividends. Order outstanding. Bank No. 34.-Deposits-$6,501,000 Cease and Desist order entered on 6-19-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to acceptable management, reduction of adversely classified assets, injection of new capital, compliance with laws, rules and regulations and loan policy, provisions for adequate liquidity, borrowings, and discontinuance of cash dividends. Order outstanding. Bank No. 35.-Deposits-$1,833,000 Cease and Desist order entered 8-11-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to acceptable management and management policies, reduction of adversely classified assets, provisions for adequate capital and liquidity, and compliance with laws, rules and regulations and loan policy. Order outstanding. Bank No. 36.-Deposits-$6,046,000 Cease and Desist order entered 8-28-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to acceptable management, reduction of adversely classified assets, injection of new capital, and compliance with laws, rules and regulations and loan policy. Order outstanding. Bank No. 37.-Deposits-$5,305,000 Cease and Desist order entered 10-17-75. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to reduction of adversely classified assets and compliance with laws, rules and regulations and loan policy. Order outstanding. Bank No. 38.-Deposits-$7,742,000 Cease and Desist order entered 1-29-76. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to acceptable management, reduction of adversely classified assets, injection of new capital, limitations on advances of credit to borrowers, compliance with laws, rules and regulations, retention of credit life and accident insurance commissions, discontinuance of cash dividends, and elimination of a concentration of credit. Order outstanding. Bank No. 39.-Deposits-$9,129,000 Cease and Desist order entered 2-18-76. Bank ordered to cease and desist from unsafe and unsound practices and take affirmative action with respect to reduction of adversely classified assets, refraining from participating in any new loans and In any extension, renewal, refinancing, or additional extension of loans acquired from closely related banks, compliance with laws, rules and regulations including Financial Recordkeeping Regulations and the Fair Credit Reporting Act, injection of new capital, and discontinuance of dividends. Order outstanding. (Formal Written Agreements) SUMMARY Bank No. 1.-Deposits-$12,251,000 Written agreement entered into on 10-27-71. Bank agreed for purposes of effecting correction of unsafe and unsound practices to take affirmative action with |