FDIC lifts cease-and-desist order against acquired New Orleans bank [New Orleans CityBusiness (LA)]

The Federal Deposit Insurance Corp. made public today that it has lifted a cease-and-desist order against United Bank and Trust Co. of New Orleans that had been in place since February 2007. The action was taken in November.

In the interim, Liberty Bank acquired United Bank, which consisted of three branches -- New Orleans, Algiers and Opelousas -- when the deal was announced in February 2009. The Opelousas branch has since been closed.

The 2007 order, which also applies to a bank's successor, cited unsound banking practices at United Bank and required the management and board of directors to take measures to improve the bank's capital levels and lending policies. Howard Brooks, CEO of United Bank at the time of its acquisition, remains an executive vice president with Liberty Bank.

Terms of Liberty's buyout of United Bank were not disclosed. When the deal was announced, United Bank had $25.5 million in holdings.

One day before the cease-and-desist order was issued in February 2007, the FDIC had lifted a similar directive for United Bank that was handed down in November 2003.