DECATUR — Aaron Holcombe, a former vice president of Decatur State Bank who managed the bank’s Bank of Siloam Springs location, has agreed to an order from the Federal Deposit Insurance Corp. to stop participating in banking activities.
The order was issued Dec. 21 but not released until Friday. Holcombe was fined $7,500 by the government agency. He left Decatur State Bank in 2011.
In the agreement, Holcombe did not admit or deny involvement in any unsafe or unsound banking practices.
The FDIC’s order states it had reason to believe that Holcombe engaged in unsafe or unsound banking practices at Decatur State Bank, causing that institution to suffer losses.
The FDIC order states that such unsafe and unsound banking practices and or breaches of fiduciary duty demonstrate Holcombe’s “unfitness to serve as a director, officer, person participating in the conduct of the affairs or as an institution-affiliated part of the bank or any other insured depository institution, or any other agency or organization enumerated” in specific federal laws.
The order prohibits him from further participation in any manner with the conduct of the affairs of any financial institution or organization specified by federal law without the prior written approval of the FDIC.
The order remains in effect until set aside by the FDIC.
Decatur State Bank, which has lost more than $21 million in the past three years, was sanctioned by the FDIC in November 2011. The holding company for the bank was sold last year.
News, Pages 1 on 01/30/2013