Actions to Terminate Insured Status Federal Deposit Insurance Act - Section 8(a)

The Corporation has issued 27 termination of insurance actions since January 1971. In each case, the bank was found to be in unsafe and unsound condition.

Also, a number of other termination of insurance actions have been recommended but were withdrawn prior to action by our Board because of favorable interim affirmative actions on the part of either the banks or management-shareholders. As in the case of cease-and-desist actions, the threat of termination of insurance has caused many affirmative action programs on the part of banks which negated the need for finalizing the actions.

Bank No.

Summary of cases

1

2

Deposits-$11.1 million

Notice of intention to terminate insured status issued on January 22, 1971. Bank was 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 adopt and strictly follow written loan policies if continued insured status was desired.

The action was terminated on June 30, 1971, when subject was merged with another bank.

Deposits-$13.4 million

Notice of intention to terminate insured status issued on March 12, 1971. Bank was ordered to provide an active and capable management, eliminate certain assets from its books 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 its capital accounts all income collected but not earned, and provide adequate capital and reserves if continued insured status was desired.

The action was terminated on December 17, 1971, based upon substantial compliance with the corrective orders.

Deposits-$3.8 million

Notice of intention to terminate insured status issued on June 30, 1971. Bank was ordered to provide an active and capable management, eliminate certain assets from its books by charge-off or otherwise, reduce the remaining classified assets, correct all violations of law listed in the report of examination, adopt and strictly follow satisfactory written loan policies, pay no cash dividends without the prior consent of the Commissioner of Banking and the FDIC, and put the assets of the bank in such form and condition as to be acceptable to the Commissioner of Banking and the FDIC if continued insured status was desired.

The action was terminated on April 6, 1973, based upon substantial compliance with the corrective orders.

Deposits-$5.9 million

Notice of intention to terminate insured status issued on November 19, 1971. Bank was ordered to provide an active and capable management, eliminate from its books certain assets by charge-off or otherwise, refrain from extending credit directly or indirectly for the benefit of a director, reduce the remaining classified assets, adopt and strictly follow satisfactory written loan policies, pay no cash dividends without the prior consent of the Commissioner of Banking and the FDIC, and put the assets of the bank in such form and condition as to be acceptable to the Commissioner of Banking and the FDIC if continued insured status was desired.

The action was terminated July 7, 1972, based upon substantial compliance with the corrective orders.

Deposits-$12.6 million

Notice of intention to terminate insured status issued on December 17, 1971. Bank was ordered to eliminate from its book assets, by charge-off or otherwise, certain classified assets, to put other assets of the bank in a satisfactory form and condition, and to provide acceptable capital funds if continued insured status was desired.

The action was terminated on July 14, 1972, based upon substantial compliance with the corrective orders.

Deposits-$8.2 million

Notice of intention to terminate insured status issued on January 27, 1972. Bank was ordered to provide acceptable management, eliminate or reduce adversely classified assets, adopt acceptable loan policies, correct violations of law, and provide acceptable capital funds if continued insured status was desired.

The action was terminated on May 14, 1973, based upon substantial compliance with the corrective orders. Deposits-$4.1 million

Notice of intention to terminate insured status issued on March 17, 1972. Bank was ordered to provide acceptable management, eliminate or reduce adversely classified assets, adopt acceptable loan policies, correct violations of law, and provide acceptable capital funds if continued insured status was desired.

The action was terminated on December 4, 1972, based upon substantial compliance with the corrective orders.

Deposits-$1.9 million

Notice of intention to terminate insured status issued on May 1, 1972. Bank was ordered to provide acceptable management, eliminate or reduce adversely classified assets, adopt acceptable loan policies, and provide acceptable capital funds if continued insured status was desired.

The action was terminated on June 11, 1973, based upon substantial compliance with the corrective orders.

Deposits-$12.6 million

Notice of intention to terminate insured status issued on October 30, 1972. Bank was ordered to eliminate or reduce adversely classified assets, obtain supporting documents prior to extending credits, adopt acceptable loan policies, and provide acceptable capital funds if continued insured status was desired.

extending credits, strictly adhere to its written loan policies, correct violations of laws, and provide acceptable capital funds if continued insured status was desired.

The action was terminated on May 29, 1974, based upon substantial compliance with the corrective orders. Deposits-$3.9 million

Notice of intention to terminate insured status issued on May 14, 1973. Bank was ordered to eliminate or reduce adversely classified assets, adopt acceptable loan policies, correct violations of law, and provide acceptable capital funds if continued insured status was desired.

The action was terminated on August 11, 1975, based upon substantial compliance with the corrective orders and a change in control ownership.

Deposits-$18.6 million

Notice of intention to terminate insured status issued on June 28, 1974. Bank was ordered to provide acceptable management, eliminate or reduce adversely classified assets, adopt acceptable loan policies, and correct violations of law if continued insured status was desired.

The action to terminate insured status was in the hearing stage when the bank was closed on June 14, 1976. Deposits-$13.8 million

Notice of intention to terminate insured status issued on August 12, 1974. Bank was ordered to provide acceptable management, eliminate or reduce adversely classified assets, adopt acceptable loan policies, pay no cash dividends without prior written consent, provide acceptable capital, and correct violations of law if continued insured status was desired.

The action was terminated on August 11, 1975, because of temporary compliance; however, due to further deterioration and the length of time since the issuance of the initial order, a new order was simultaneously issued.

Deposits-$6.6 million

Notice of intention to terminate insured status issued on August 12, 1974. Bank was ordered to provide acceptable management, eliminate or reduce adversely classified assets, adopt acceptable loan policies, limit invest