Three national banks – in Minnesota, Indiana and Oklahoma – faced enforcement orders from their federal regulator this month for unsafe or unsound practices, the agency said Thursday.
In a release, the Office of the Comptroller of the Currency (OCC) said the enforcement actions were issued against: Heritage Bank, N.A. of Spicer, Minn.; United Fidelity Bank, FSB of Evansville, Ind.; and Vast Bank National Association, of Tulsa, Okla.
Heritage Bank entered into a formal agreement with the agency after the OCC determined the unsafe, unsound practices rated to capital and strategic planning, timely and adequate credit review, ongoing monitoring of the credit portfolio, and liquidity risk management.
The actions against both United Fidelity Bank and Vast Bank were consent orders, the OCC said. The former bank’s order related to corporate governance and enterprise risk management, credit underwriting and administration, liquidity risk management, and interest rate risk management. The latter bank’s order related to capital ratios, capital and strategic planning, project management, books and records, liquidity risk management; interest rate risk management, information technology controls, risk management for new products, and custody account controls.
In other action, the agency prohibited Helen Caldwell, a former financial advisor for Citibank, N.A., Sioux Falls, S.D. from further employment in a federally insured financial institution.
According to the OCC, Caldwell allegedly solicited an elderly customer to invest – who did so – more than $200,000 in a company Caldwell co-owned. Further, the agency charged, Caldwell received at least $99,000 in direct payments from the company and falsely represented that she was following, and would follow, policies prohibiting this conduct.