FDIC issues orders on one area bank and lifts restrictions on another

Jan. 31--The Necedah Bank will have to take steps to beef up training and compliance with consumer-protection rules.

The bank, in Juneau County, about 90 miles northwest of Madison, agreed to a consent order with federal regulators in October 2013, the Federal Deposit Insurance Corp. disclosed Friday.

Under terms of the order, The Necedah Bank will have to set up a training program for all employees on consumer laws, employ a compliance consultant, and strengthen oversight by the board of directors.

The bank neither admitted nor denied allegations of "unsafe or unsound" practices and violations of law or regulations "in the area of consumer protection and compliance," the FDIC order said.

Founded in 1899, The Necedah Bank is part of Ambanc Financial Services, Beaver Dam.

On another matter disclosed Friday, the FDIC said it has ended a consent order against Cambridge State Bank, Cambridge. Issued in January 2010, the order called on the bank to boost its capitalization, reduce delinquent loans and maintain qualified management.

After the order was issued, Cambridge State Bank hired new senior management, and the foundation that owns the bank gave it an $11 million cash infusion.

"This capital injection not only improved the balance sheet of the bank, but it also enabled the bank to work with our customers as they also dealt with the effects of the recession," said Jason Brown, the bank's president and chief executive, in a written statement on Friday.

Also Friday, the FDIC released an order barring a former Wausau bank official from participating in any bank-related activities in the future. Jeffrey Tiffany, of Mosinee, was convicted of making false statements in connection with an insurance premium financing note while he was a senior vice president of River Valley Bank. Tiffany was sentenced last year to 30 days in jail, a $25,000 fine and community service.

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