Federal Deposit Insurance Corp. regulators in late July barred Art Helf, a co-founder and former chairman and CEO of Tennessee Commerce Bancorp, and Lamar Cox, who was at times chief administrative officer, CFO and COO at the failed bank, from holding any position of authority in a financial business under the agency's purview. Helf, on the left in our photo, and Cox are the second and third former execs of Tennessee Commerce to come under regulatory fire: Earlier this year, the FDIC said it was going after former CEO Mike Sapp for alleged breaches of his fiduciary duty. The orders against Helf and Cox, which were made public late last week, came after both men waived their right to a hearing on the FDIC's charges but neither admitted to nor denied those claims.
Community South Bank, which was based in Parsons and ran 14 offices across the state, was closed Friday afternoon by regulators. The $400 million-asset bank is being taken over by Russellville, Ala.-based CB&S Bank., which has assets of $1.3 billion and operates one of its 43 offices in Murfreesboro. Community South rang up a first-half loss of $5.9 million — thanks mainly to bad real estate loans — after finishing 2012 with a $7.3 million loss. CB&S also is buying about a third of its assets. Check out the FDIC's info on the closure here.
Bank holding company Community First Inc. continues to make progress toward the capital levels imposed on it by the Federal Deposit Insurance Corp. in September 2011 even though it posted only a tiny first-quarter comprehensive profit. The parent of Community First Bank & Trust now needs $7 million in capital to meet the FDIC's heightened requirements, which means it may still have put its shareholders through a very dilutive stock offering. But the gap is now $4 million smaller than it was at the end of 2012, which was itself a decent improvement from Q3's $15.3 million.
Another note from the company's quarterly report filed last week: Because Community First has missed six straight dividend payments on the $18 million of preferred stock it sold to the U.S. Treasury four years ago, the feds now have the right to put two representatives on the company's board.
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