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Bank of Lake Village emerges from Federal order.

The Federal Deposit Insurance Corp. has announced the termination of a cease-and-desist order it issued against the Bank of Lake Village almost two years ago.

The March 2004 order required the bank's directors to take specific steps to clean up its portfolio of problem loans and to stabilize the bank's capitalization.

Bank President Terence J. Alpe said the termination of the order followed a positive examination by federal bank regulators last summer.

Alpe had blamed the problems in 2003 and 2004 on a depression in the catfish industry. And, conversely, he said the bank's rebound was also a direct reflection of improvements in the aquaculture industry.

Bank of Lake Village, which had $60 million in assets as of Sept. 30, lost $1.58 million in 2004 after net charge-offs of $2.17 million. Year-end figures for 2005 are not yet available from the FDIC, but Alpe said the bank's Dec. 31 call report would show full-year net income of $416,775.

"Surprisingly enough, the local public here recognized what was happening to the economy and that what was happening to the bank was a direct result of that economy," Alpe said.

The bank maintained its deposit base and was positioned to rebound along with the local catfish farmers, he said.
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Title Annotation:BANKING & FINANCE
Author:Turner, Lance
Publication:Arkansas Business
Date:Feb 13, 2006
Words:210
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