BARDSTOWN, KY – The Federal Deposit Insurance Corp. (FDIC) and Kentucky Department of Financial Institutions (KDFI) have terminated a Consent Order imposed on Town & Country Bank and Trust Co. in Bardstown, the bank announced today. Consent orders are a formal agreement between banks and regulators designed to help address improving certain areas of a bank such as credit quality, capital, earnings and liquidity.
Since entering into the Consent Order, Town & Country Bank and Trust board of directors and leadership team have made numerous changes to improve the bank’s operations and risk management practices while continuing to focus on servicing and retaining its core clients. The bank realigned its lending policies and procedures, enhanced credit monitoring and put new control processes in place as it worked to aggressively resolve problem loans.
“The lifting of the regulatory agreement is a major milestone in the transformation of Town & Country Bank and Trust into a high-performing community bank once again,” said Linda Rumpke, president/CEO. “We have a talented staff of industry professionals who are dedicated to our clients, shareholders and the communities we serve.”
Rumpke was finance commissioner for two years in the administration of former Lexington Mayor Jim Newberry and before taking that position in 2009 headed JP Morgan Chase Bank operations in Lexington.
“We truly appreciate the confidence and commitment our customers have shown as we have navigated through this period of organizational change,” she said. “We look forward to continuing as their provider of choice, helping them achieve their dreams. Our commitment remains the same as it has been for more than 100 years – to deliver personalized products and services with a “HOMETOWN” flair!”
The bank’s management and its board worked closely with regulators to address its challenges and believe the bank has emerged as a stronger, healthier organization, said a statement announcing the consent decree termination. The bank has posted earnings every quarter in 2013 while maintaining a high loan loss reserve (4.91%) to address the troubled loans that remain in its portfolio.
Rumpke added that the positive earnings continue to boost capital levels with Tier 1 capital at 9.76% at the end of October 2013. The bank is experiencing strong demand for new loans across its footprint and, according to Rumpke, “we are still here and focused on meeting the unique needs of our customers.”
“We’re very excited about the termination of the regulatory consent order and I’m pleased with the accomplishments over the past three years” said Board Chairman, Thomas A. Wimsett, who was named chairman in March 2011. “We were able to raise the necessary capital, attract the appropriate management, and dramatically improve our credit and underwriting skills. We are very fortunate to have such a dedicated group of employees, customers and shareholders.
“We believe the organization is well positioned for on-going success as we enter 2014.”
Town & Country Bank and Trust has served central Kentucky for more than 100 years. It has locations in Bardstown, New Haven, Lawrenceburg and Nicholasville.