Summary
REDLANDS - Regulators began warning 1st Centennial Bank about its loan strategies almost five years before the bank was shut down, according to allegations by the Federal Deposit Insurance Corporation.
Former bank directors and officers "were warned by FDIC examiners as early as March 2004 of the inherent risk in the bank's high CRE (commercial real estate) concentration strategy," according to a complaint filed in federal court by the FDIC. The complaint was filed Jan. 14 against 14 former directors and officers and five unidentified defendants.See the full content of this document
Extract
Fdic Says 1st Centennial Warned Early, Often
According to the suit, since March 2004 the FDIC gave the bank recommendations and warnings, and met, negotiated, did a visitation and launched an examination before the bank was shut down in January 2009. The FDIC gave Reports of Examination, which in April 2006 "warned that the high concentration in real estate construction lending in the Bank's loan portfolio posed a potential risk to the health of t...
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