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{{12-31-94 p.C-3414}}
   [10,870] In the Matter of People Bank, Amite, Louisiana, Docket No. FDIC-93-125PCAS (9-1-93).

   Bank agrees to take prompt corrective action to increase its capitalization. (This order was terminated by order of the FDIC dated 10-6-94; see ¶15,923.)

   [.1] Capital—Capital Plan
   [.2] Capital—Tier 1 Capital—Increase/Maintain—Methods
   [.3] Fees and Expenses—Restrictions
   [.4] Dividends—Restricted

In the Matter of
PEOPLE BANK
AMITE, LOUISIANA
(Insured State Nonmember Bank)
SUPERVISORY PROMPT
CORRECTIVE ACTION
DIRECTIVE

FDIC-93-125PCAS

   People Bank, Amite, Louisiana ("Bank"), being an undercapitalized depository institution as that term is defined in section 38(b)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1831o(b)(1), and section 325.103 of the FDIC's Rules and Regulations, 12 C.F.R. § 325.103, based upon the Bank's September 30, 1992, and December 31, 1992, Consolidated Reports of Condition and Income, and having waived receipt of a NOTICE OF INTENT TO ISSUE A PROMPT CORRECTIVE ACTION DIRECTIVE ("NOTICE") detailing the actions which will be required to be taken by the Bank and/or the proscriptions which will be imposed on the Bank pursuant to section 38 of the Act, 12 U.S.C. § 1831o, and section 308.201(a) of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.201(a); and the Bank having waived the right to file a response to the NOTICE pursuant to section 308.201(c) of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.201(c); and the Bank having submitted a capital restoration plan ("Capital Plan") to the Federal Deposit Insurance Corporation ("FDIC") on January 27, 1993, pursuant to section 38(e)(2) of the Act, 12 U.S.C. § 1831o(e)(2); and the FDIC having accepted the Capital Plan subject to the restrictions contained herein, the FDIC hereby issues this PROMPT CORRECTIVE ACTION DIRECTIVE ("DIRECTIVE") pursuant to the provisions of section 38 of the Act, 12 U.S.C. § 1831o, and section 308.201(d) of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.201(d).

PROMPT CORRECTIVE ACTION
DIRECTIVE

   [.1] IT IS HEREBY DIRECTED, that the Bank shall comply with the terms of the Capital Plan subject to the restrictions contained in this DIRECTIVE.

   [.2] IT IS FURTHER DIRECTED, that within 90 days of the effective date of this DIRECTIVE, the Bank shall inject not less than $200,000 in capital and achieve and maintain a ratio of Part 325 Tier I capital to Part 325 total assets of not less than 5.25 percent.
   IT IS FURTHER DIRECTED, that the Bank shall on or before December 30, 1993, and June 30, 1994, achieve a ratio of Part 325 Tier I capital to Part 325 total assets of {{11-30-95 p.C-3415}}not less than 5.5 percent and 6.0 percent, respectively.
   IT IS FURTHER DIRECTED, that during the life of this DIRECTIVE, the Bank shall comply with the prompt corrective action provisions contained in section 38 of the Act, 12 U.S.C. § 1831o, as set forth at 12 U.S.C. §§ 1831o(d)(1) (capital distribution restriction), (d)(2) (management fee restriction), (e)(3) (asset growth restriction), (e)(4) (restrictions on acquisitions, branching, and new business), and (f)(4) (restriction of senior executive officer compensation).
   IT IS FURTHER DIRECTED, that any increase in Tier I capital necessary to meet the ratio required by this DIRECTIVE may be accomplished by the following:

       (i) The sale of new securities in the form of common stock or noncumulative perpetual preferred stock; or
       (ii) The direct contribution of cash by the directors or shareholders; or
       (iii) Any other method acceptable to the FDIC.
   IT IS FURTHER DIRECTED, (i) that if all or part of the increase in Part 325 Tier I capital required by the DIRECTIVE is accomplished by the sale of new securities, the board of directors of the Bank shall adopt and implement a plan for the sale of such additional securities, including the voting of any shares owned or proxies held or controlled by them in favor of the plan. Should the implementation of the plan involve a public distribution of the Bank's securities (including a distribution limited only to the Bank's existing shareholders), the Bank shall prepare offering materials fully describing the securities being offered, including an accurate description of the financial condition of the Bank and the circumstances giving rise to the offering, and any other material disclosures necessary to comply with the Federal securities laws. Prior to the implementation of the plan and, in any event, not less than 20 days prior to the dissemination of such materials, the plan and any materials used in the sale of the securities shall be submitted to the FDIC, Registration and Disclosure Unit, 550 17th Street, N.W., Room F-250, Washington, D.C. 20429, for review. Any changes requested to be made in the plan or materials by the FDIC shall be made prior to their dissemination. If any part of the increase in Part 325 Tier I capital is provided by the sale of noncumulative perpetual preferred stock, then all terms and conditions of the issue, including but not limited to those terms and conditions relative to the interest rate and any convertability factor, shall be presented to the Regional Director (Supervision) of the FDIC's Memphis Regional Office ("Regional Director") for prior approval.
   (ii) In complying with the capital provisions of this DIRECTIVE, the Bank shall provide to any subscriber and/or purchaser of the Bank's securities written notice of any planned or existing development or other changes which are materially different from the information reflected in any offering materials used in connection with the sale of Bank securities. The written notice required by this paragraph shall be furnished within 10 days from the date such material development or change was planned or occurred, whichever is earlier, and shall be furnished to every subscriber and/or purchaser of the Bank's securities who received or was tendered the information contained in the Bank's original offering materials.
   (iii) For purposes of this DIRECTIVE, the terms "Part 325 Tier I capital" and "Part 325 total assets" shall have the meanings ascribed to them in Part 325 of the FDIC's Rules and Regulations, respectively, subsections 325.2(t), and 325.2(v), 12 C.F.R. §§ 325.2(t) and (v).

   [.3] IT IS FURTHER DIRECTED, that any legal fees, costs and expenses associated with the preparation of the Bank's Capital Plan and stock offering shall not, without the prior permission of the Regional Director, exceed an aggregate amount of $35,000. The fees, costs and expenses shall be reasonable in light of the work performed and shall be adequately documented.

   [.4] IT IS FURTHER DIRECTED, that the Bank shall not declare or pay any cash dividends on its capital stock without the prior written approval of the Regional Director.
   IT IS FURTHER DIRECTED, if the Bank should fail to fully comply with any portion of the DIRECTIVE and/or Capital Plan, the Bank shall on the fifteenth day of the second month following the effective date of this DIRECTIVE, and on the fifteenth day of every third month thereafter, furnish written reports to the Regional Director detailing the areas of noncompliance and detailing the {{11-30-95 p.C-3416}}corrective actions taken or being taken by the Bank to secure compliance.
   IT IS FURTHER DIRECTED, that this DIRECTIVE shall become effective immediately upon its receipt by the Bank.
   Each provision of this DIRECTIVE shall be binding upon the Bank, its directors, officers, employees, agents, successors, assigns, and other institution-affiliated parties of the Bank.
   The provisions of this DIRECTIVE shall remain effective and enforceable except to the extent that, and until such time as, any provision of this DIRECTIVE shall have been modified, terminated, suspended, or set aside by the FDIC.
   Dated at Washington, D.C., this 1st day of September, 1993.
   Pursuant to delegated authority.

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