Federal Deposit
Insurance Corporation

   [¶12,231] In the Matter of Timothy L. Pilkington, Bank of Friendship, Friendship, Tennessee, Docket No. 03-179K (6-28-04).

   Respondent agrees to pay civil money penalty assessed by the FDIC in the amount of $2,500.

In the Matter of
TIMOTHY L. PILKINGTON,
individually, and as an institution-affiliated party of
BANK OF FRIENDSHIP
FRIENDSHIP, TENNESSEE
(Insured State Nonmember Bank)
ORDER TO PAY
CIVIL MONEY PENALTY

FDIC-03-179K

   Timothy L. Pilkington ("Respondent") has been advised of the right to receive a NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, AND NOTICE OF HEARING ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the violations of law, unsafe or unsound banking practices and/or breaches of fiduciary duty for which a civil money penalty may be assessed against the Respondent, and has been further advised of the right to a hearing on the alleged charges under Section 8(i) of the Act, 12 U.S.C. §1818(i), and the FDIC's Rules of Practice and Procedure, 12 C.F.R. Part 308.

   Having waived those rights, the Respondent entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO PAY CIVIL MONEY PENALTY ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, whereby solely for the purpose of this proceeding and without admitting or denying any violations of law, unsafe or unsound banking practices and/or any breaches of fiduciary duty, the Respondent consented and agreed to pay a civil money penalty in the amount of Two Thousand Five Hundred Dollars ($2,500).

   The FDIC considered the matter and determined it had reason to believe that the Respondent has engaged or participated in violations of law, unsafe or unsound banking practices and/or breaches of fiduciary duty for which a civil money penalty of Two Thousand Five Hundred Dollars ($2,500) is appropriate to be assessed against the Respondent pursuant to Section 8(i)(2) of the Act, 12 U.S.C. §1818(i)(2).

   The FDIC, therefore, accepted the CMP CONSENT AGREEMENT and issued the following:

   IT IS HEREBY ORDERED that a penalty of $2,500 be, and hereby is, assessed against Timothy L. Pilkington pursuant to Section 8(i)(2) of the Act, 12 U.S.C. §1818(i)(2), the receipt of which is hereby acknowledged.

   IT IS FURTHER ORDERED that the Respondent is prohibited from seeking or accepting indemnification from any insured depository institution for the civil money penalty assessed and paid in this matter.

   This Order to Pay shall be effective upon issuance.

   Pursuant to delegated authority.

   Dated this 28th day of June, 2004.