The Peoples Bank in Winder is now under the watch of the Federal Deposit Insurance Corporation (FDIC).

When the FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in December, claims of unsafe or unsound banking practices levied against The Peoples Bank was among the 57 matters considered.

The Peoples Bank "has consented, without admitting or denying any charges of unsafe or unsound banking practices or violations of law or regulations relating to weaknesses in asset quality, capital adequacy, earnings, management effectiveness, liquidity, and sensitivity to market risk" to the consent order which has a dozen provisions to be satisfied.

The consent order comes under 12 U.S.C. § 1818(b) and section 7-1-91 of the Official Code of Georgia Annotated, GA Code Ann. Section 7-1-91 (1985).

In the order signed by Doreen R. Eberley, Acting Regional Director Division of Supervision and Consumer Protection for the Atlanta Region Federal Deposit Insurance Corporation, the FDIC ordered the bank’s Board of Directors to "increase its participation in the affairs of the Bank, assuming full responsibility for the approval of sound policies and objectives and for the supervision of all of the Bank’s activities, consistent with the role and expertise commonly expected for directors of banks of comparable size."

In addition, The Peoples Bank was ordered to have management with qualifications and experience commensurate with assigned duties and responsibilities.

Minimum capital levels were established for the bank to maintain, and the Board was directed to review the adequacy of the Allowance for Loan and Lease Losses (ALLL) and establish a comprehensive policy for determining the adequacy of the ALLL.

Also ordered is the formulation and implementation of a written plan to reduce the Bank’s risk exposure in each asset or relationship in excess of $500,000 along with the establishment of goals and strategies for improving and sustaining the earnings of the bank.

The bank must also undertake asset growth of 10 percent or more and cannot pay cash dividends without the prior written consent of the supervisory authorities

The bank shareholders must also be provided with a description of the order in conjunction with the next shareholder communication and also with its notice or proxy statement preceding the next shareholder meeting.

A progress report must also be filed with the FDIC.