Safety and Soundness: Failed Bank Review of SCB Bank. Audit Report.

摘要

The report presents the results of our review of the failure of SCB Bank (SCB), located in Shelbyville, Indiana, and the former Office of Thrift Supervision’s (OTS) supervision of the institution. OTS regulated SCB until July 21, 2011, when the Office of the Comptroller of the Currency (OCC) assumed regulatory responsibility for federal savings associations pursuant to P.L. 111-203. SCB was an insured federal stock savings association established in 1891. It operated one main office and three branches in Shelby County, Indiana. OCC closed SCB and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver on February 10, 2012. As of December 31, 2011, SCB had approximately $182.6 million in total assets. At that time, FDIC estimated the loss to the Deposit Insurance Fund to be $33.9 million. Because the loss to the Deposit Insurance Fund is less than $150 million, as set forth by section 38(k) of the Federal Deposit Insurance Act, we conducted a review of the failure of SCB that was limited to (1) ascertaining the grounds identified by OCC for appointing the FDIC as receiver and (2) determining whether any unusual circumstances exist that might warrant a more in-depth review of the loss. In performing our review we (1) examined documentation related to the appointment of FDIC as receiver, (2) reviewed OTS reports of examination for the 5-year period before the bank’s failure, and (3) interviewed OCC personnel.