Friday, June 12, 2009

AGENCIES CAUTION AGAINST PRACTICES OF LOCAL BANK

 

The Federal Deposit Insurance Corporation ("FDIC") has issued an Order directing Peoples Bank of Kentucky, Inc., Flemingsburg, Kentucky, to refrain from certain banking activities that the FDIC considered violations of law or regulations. Peoples Bank voluntarily made the Order public today even though the FDIC has not yet released it. The Order results from an extensive examination of the Bank's compliance activities through the period ending June 19, 2008. The issuance of the Order has been accepted by the Bank's Board of Directors which has agreed to quickly correct the violations found by the examiners.

The Order does not affect the day-to-day operations of the Bank. Flemingsburg's only local bank, with approximately $152,416,000 in deposits, was started over 100 years ago, and has been operating continuously since that time.

The Order provides the foundation for the process the Bank must employ to correct the violations noted in the Order and the Bank's activities will be monitored by the regulators until they are satisfied that the problems have been corrected.

"Residential loans and all other aspects of bank business will continue as usual and customers will not notice any change in the high level of service they have come to expect from Peoples Bank," according to James Hay, President and CEO of the Bank.

President Hay also stated that "The Board of Directors emphasizes that the Bank has adequate capital, is financially sound, and all deposits continue to be insured by the Federal Deposit Insurance Corporation. I would like to point out also that the examination did not question the capital or solvency of the Bank in any way. The Bank appreciates the work done by the FDIC in bringing to light the deficiencies in our compliance management system and the Bank will comply fully and quickly with the requirements of the Order. The Board of Directors appreciates the FDIC's findings because implementation of the necessary changes will strengthen the Bank's compliance management system and consumer compliance activities."

Under the Order, the Bank is directed to desist from operating with a compliance management system that does not ensure compliance with federal consumer protection laws, regulations and policies; failing to effectively monitor compliance with federal consumer protection laws; and failing to adequately implement policies and procedures and an adequate audit program. Included in the Order is a requirement that the Bank appoint a compliance committee and retain a qualified compliance officer capable of administering an effective compliance management system.

The Bank has already begun the process of complying with the Order and has contracted with Professional Bank Services, a respected bank consulting firm, for assistance in establishing the necessary systems to ensure current and future compliance with consumer protection laws and regulations.

James Hay, also serving as Chairman of the Bank's Board of Directors, said that the Bank prides itself as being one of the few remaining locally owned community banks in Kentucky. It's shareholders are made up almost exclusively of local or former residents of Fleming County. "We have been open since 1906 and we plan to be here another 100 years. We intend to remain a local bank, ready at all times to serve the banking needs of our community," said Hay. "Despite some operational changes related to our compliance management, it will be business as usual at Peoples Bank. When you walk into Peoples Bank, I think you're still going to be impressed with the service you receive. That is what makes Peoples Bank so unique."

Mrs. Jones

Wilma Ryan Prather Jones, was born on April 24, 1919, in Fleming County, the daughter of Mary Thomas Story and John K. "Jack" Ryan. She departed this life unexpectedly on June 10, 2009 at St. Joseph Hospital in Lexington.
She was a graduate of John G. Fee High School in Maysville. She accepted Christ as her Savior and tried to live life around her Lord.
In 1945, she was married to Robert Marion Prather in Flemingsburg, who preceded her in death. To this union one daughter, Linda (Leroy Talbert) was born; and three sons, Samuel Ray, James Carl (Freda) and Robert M. "Bobby" Prather, who preceded her in death.
She married Tassus Edward Jones in 1965 and became the step-mother of Eleanor Jones Smothers and Tassa Jones Wigginton. She was preceded in death by Tassa Jones, January 1995.
Wilma Jones was a devoted member of New Zion United Methodist Church where she was active in the United Methodist Women. She was also a committed member of the Scott County Homemakers, the Get-Together Club and the Georgetown Chapter of the NAACP.
She leaves to mourn, one sister, Julia C. Gray of Dayton, Ohio; 10 grandchildren; 18 great-grandchildren; two great-great-grandchildren; and a host of family and friends. "Her life from sunrise to sunset has left an afterglow too bright to ever dim in the lives of her family and her friends."
Services are 11 a.m., Saturday, June 13, 2009, at the New Zion United Methodist Church, Lexington.
Burial will follow in the Fleming County Cemetery, Saturday, with a graveside service at 2:30 p.m.
Visitation is today, June 12, 2009, from 6-9 p.m. at the church in Lexington.
In lieu of flowers the family has ask for memorial contributions to be sent in memory of Wilma Jones to the Tassus E. Jones Scholarship Fund at New Zion United Methodist Church, 122 New Zion Road, Lexington, Ky. 40324.
Arrangements by Denton-Workman Funeral Home in Flemingsburg.