The Federal Deposit Insurance Corp. took punitive action last month against four banks that received TARP funds, according to the regulator's release of enforcement actions for the month of August.
The banks include:
- Syringa Bank in Boise, Idaho, which received $8 million.
- Colonial American Bank in Horsham, Penn., which received $574,000.
- The Park Bank in Madison, Wis., which received $23.3 million.
- Securant Bank & Trust in Menomonee Falls, Wis., which received $5.1 million.
The consent order with Syringa Bank requires its to retain qualified management, boost its capital, reduce its substandard assets and develop a liquidity plan, among other tasks. The order with Colonial American Bank and the order with Securant are similar.
The Park Bank's consent order focuses on its compliance management system and audit program.
Syringa has missed its last four quarterly dividend payments, while Securant has missed only its most recent payment. The other two banks, Colonial American Bank and The Park Bank, are making their payments.
Syringa also has the worst rating possible from banking analyst Bauer Financial.
Syringa's holding compay posted a net loss of $1.3 million in the first half of 2010 -- an improvement over its net losses of more than $4.3 million in the first half of 2010, according to earnings documents on its web site.
The bank recently raised $1.4 million from a capital offering and is continuing to seek more capital.
"As the economy has continued to struggle to recover, Syringa Bancorp and Syringa Bank have done everything possible to reserve for potential losses by writing off non-performing loans," the company's president and chief executive, Scott Gibson, said in a statement. "While such actions have negatively impacted capital, these actions have been critically important to Syringa Bank's conservative outlook and establishment of a stronger bank for the future."