KLKN-TV: News, Weather and Sports for Lincoln, NE; KLKNTV.comFDIC Issues Orders To Thayer County Bank
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Thayer County Bank, a 135-year old, family-owned institution in Hebron, has been hit with a cease and desist order from the Federal Deposit Insurance Corporation.
The 19-page order from the FDIC's regional office in Kansas City directs bank management to deal with "unsafe or unsound banking practices" at its lone location in Hebron.
Among the problems that turned up in a June bank examination were inadequate capital, inadequate allowance for loan and lease losses, inadequate liquidity and hazardous lending.
Corrective actions were put on a 30- or 60-day timetable, dating from Oct. 21.
News of the cease and desist order at Hebron was included in a monthly update released Friday for all 50 states by the FDIC.
Pat Kenner, president and chief executive officer at the state-chartered bank, said management and its board of directors had decided not to appeal, "and, for the most part, we concur with their findings."
He said bank personnel met with state and federal regulators in October "and they pretty well tell you what's going to be happening."
"I would say our situation is certainly not dire," Kenner said Friday. "We're just battling through some tough times.
"I would say a lot of our problem is that we tend to work with borrowers maybe a little longer than we should -- part of that being that we're part of the fabric of the community and we work with our customers."
Kenner said the bank did not lend any money to the bankrupt Altra Nebraska ethanol plant at nearby Carleton, and it had none of the risky strategies turning up nationally in the banking industry with sub-prime mortgages or privately offered, mortgage-backed securities.
"Most all of it is recession related," Kenner said.
