The Federal Deposit Insurance Corp. has publicly released enforcement actions against the former Hastings State Bank and a member of the board of directors, Paul H. Powers.
The FDIC ordered Hastings State Bank to pay a $220,000 fine and make several corrective actions within 60 days in an order issued Dec. 3, 2012, which was publicly released Friday.
Pinnacle acquired Hastings State Bank on Dec. 20, 2012. Market President Scott Kvols said the fine had been paid before the FDIC approved the purchase.
In the December order, the FDIC had determined that Hastings State Bank had "engaged in unsafe or unsound banking practices and engaged in deceptive and unfair acts and practices in or affecting commerce." Hastings State Bank officials agreed to the fine and several corrective actions to be taken, including retaining a compliance officer and compliance program to ensure consumer laws are being followed, internal monitoring, improved training and auditing.
Kvols said Pinnacle Bank had to have those safeguards in place before the purchase, but Pinnacle already had developed them.