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FDIC hits Tampa bank

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By MICHAEL SASSO

msasso@tampatrib.com

Published: June 28, 2009

TAMPA - Federal banking regulators have hit the small First Commercial Bank of Tampa Bay, 4600 W. Kennedy Blvd., with a cease-and-desist order demanding, among other things, the bank improve its finances.

In an order issued last month, the Federal Deposit Insurance Corp. says it found reason to think First Commercial Bank engaged in "unsafe or unsound banking practices and had committed violations of law and/or regulations."

The order does not close the bank but outlines FDIC's demands that the bank stop operating with a large volume of poor-quality loans and lax underwriting standards. The federal agency also advises the bank on how to appoint qualified management and to increase participation of its board of directors.

Finally, the agency demands First Commercial Bank improve its finances by reducing its "substandard" asset balance from about $19.1 million to $9.5 million within 720 days; denying additional credit to customers who have troubled loans with the bank; and reviewing its liquid assets on a daily basis to make sure it can meet its cash needs.

First Commercial Bank also operates a branch on Gandy Boulevard in Tampa.

Michael Sasso

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