Yet another TARP recipient hit with enforcement action

The Federal Reserve announced an enforcement action Wednesday against TARP recipient Idaho Bancorp, marking the second bailed out bank this week to come under the agency's gun.  

Idaho Bancorp is the holding company for Boise-based Idaho Banking Company, which has four branches in the state. The holding company received $6.9 million through the Troubled Asset Relief Program in January 2009. It has not paid back any of that sum, although it has paid $124,300 in dividends. 

The bank, which lost $11.2 million in 2009 and lost $1.6 million in 2008, signed an agreement with the Fed that requires it to: 

-- Submit plans to strengthen the board's oversight

-- Conduct an assessment of bank staff

-- Submit a plan to reduce CRE concentrations

-- Submit plans to improve its standing on various loans

-- Submit plans for maintaining adequate capital and liquidity

"The harsh economic times have affected many local businesses and local residents," said Jim Latta, the bank's president and chief executive, in a statement. "Consequently the bank's performance has been directly affected and we welcome the help and assistance of the State of Idaho and the Federal Reserve." 

He added that the bank had already started to implement some of the requirements in the agreement. 

BailoutSleuth reported earlier this week on an agreement the agency signed with Heritage Oaks Bancorp, which was awarded $21 million in TARP funds.  

The Fed also took action against three other banks that are not TARP recipients , including Olmsted Holding Corporation in Minnesota, Horizon Bank in Florida and Ravalli County Bank and its holding company, Ravalli County Bankshares Inc., in Montana.