For the second time in less than a decade, a small Nebraska bank has agreed to a consent order with federal regulators.

Ericson State Bank, a one-branch bank based in the Wheeler County village of Ericson, agreed to a number of measures in the consent order with the Federal Deposit Insurance Corp. The order was issued last month, and the FDIC made it public on Friday.

Without admitting any wrongdoing, the bank agreed to take more than a dozen corrective steps, including:

* Hiring a CEO experienced in working with problem banks.

* Adding at least two independent board members.

* Ceasing payment of any dividends or bonuses to management without approval.

Keep reading for FREE!
Enjoy more articles by signing up or logging in. No credit card required.

* Charging off uncollectable assets and reducing problem assets.

* Formulating a three-year strategic plan and a one-year profit/budget plan.

The bank, which had about $109 million in assets as of June 30, has seen its allowance for loan losses more than triple in the past year, while its amount of delinquent loans grew from zero to nearly $8 million.

Ericson State Bank also agreed to a consent order with the FDIC in June 2010. That order was canceled in 2012 after the bank fulfilled the requirements.

Bank officials could not be reached for comment.

Be the first to know - Sign up for News Alerts

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Business editor/reporter

Matt Olberding is a Lincoln native and University of Nebraska-Lincoln graduate who has been covering business for the Journal Star since 2005.

Load comments