A Tupelo, Miss., bank has agreed to pay a $325,000 civil money penalty (CMP) after a finding that the bank failed to obtain required flood insurance coverage for loans made for structures in a flood zone, the federal insurer of bank deposits said Friday.
According to the Federal Deposit Insurance Corp. (FDIC), the penalty was assessed against Cadence Bank of Tupelo. The action was one those taken by the agency during October.
According to FDIC, the bank committed more than 400 violations of the Flood Disaster Protection Act (FDPA), as well as 99 violations of the National Flood Insurance Act (NFIA). The agency called the bank’s actions a “pattern.”
In other penalties assessed by the agency in October, the FDIC said it:
- Charged Joshua Tye Young, a former employee of TBK Bank in Dallas, Texas, a $20,000 CMP for his alleged breach of fiduciary duty “through loans in which he had a personal financial interest that he did not disclose, including loan proceeds that were paid for own benefit.”
- Charged J. Autry Gobbell, a former president and CEO at Peoples Bank of Clifton, Tenn., a $15,000 CMP for facilitating “his receipt of the tangible economic benefit of $88,355.32 in loan proceeds” without complying with federal reporting regulations.