Cornerbank – based in Winfield – has successfully emerged from a formal agreement that had subjected the bank to closer federal scrutiny for nearly three years.
The U.S. Treasury’s Office of the Comptroller of the Currency, in a document filed May 11 of this year, said Cornerbank had met compliance standards of the agreement. It brings to an end a period of tighter regulation the government imposed on the bank on July 1, 2008.
The government stepped in then to set performance standards for Cornerbank after an evaluation showed the financial institution was under-capitalized and carrying too many high-risk commercial real estate loans.
Banks under formal agreement with the OCC also are required to form compliance committees.
Cornerbank was subject to an agreement that was filed just weeks after the government took the same action against Home National Bank, an Oklahoma-based bank with Winfield and Ark City locations.
Home National was eventually closed by federal regulators and a portion of its assets were purchased by Ponca City-based RCB Bank.