Two TARP recipients hit with enforcement actions by Comptroller of the Currency

A pair of TARP recipients are subject to enforcement from the Office of the Comptroller of the Currency, based on the agency's latest release of enforcement actions.

Texas Community Bank N.A., based in the suburbs of Houston, was hit with an OCC cease-and-desist order Sept. 15.

The order calls for the bank to develop a strategic plan, boost its capital ratios, reduce its criticized assets, and develop a liquidity program, among other provisions.

Texas Community Bank's holding company, TCB Holding Co. received $11.7 million in taxpayer aid through the Troubled Aset Relief Program in January 2009. The entire balance remains outstanding.

TCB has become a TARP "dividend deadbeat," having missed its last two scheduled dividend payments owed to taxpayers, valued at $319,700.

The bank had operating losses of $1.4 million through the first half of this year, compared to net operating income of $1.4 million through the first half of 2009.

Earlier this year, it entered a deal to sell one of its branches along with $85 million in selected loans to Houston's Integrity Bank SSB.

The OCC's Aug. 16 formal agreement with Peoples National Bank in Easley, S.C. calls for it to develop capital and profit plans, address its criticized assets, examine its credit risk and concentrations, and come up with a liquidity plan.

According to an 8-K filed by the company, the enforcement stems from the OCC's examination of the bank that began in the first quarter.

"Implementation of the agreement will increase the bank's administrative costs somewhat in the near-term, but the amount of such increase is not expected to be material to the Registrant," the company wrote. "Many of the actions required by the agreement have already been implemented by the bank."

The bank had net operating losses of nearly $1.2 million through the first half of the year, compared to net operating income of $711,000 through the first of 2009.

Its holding company, Peoples Bancorporation, received nearly $12.7 million in TARP money in April 2009. Over the summer, the company named L. Andrew Westbrook III its new president and chief executive.

Click here to view the full list of OCC's most recently announced enforcement actions.

blog comments powered by Disqus