United Bank Enters New Consent Order

United Bank has announced it has entered into a new consent order with its primary federal regulator, the Office of the Comptroller of the Currency.

The order replaces the cease and desist order issued by its former federal regulator, the Office of Thrift Supervision in November 2010. The OTS became part of the OCC on July 21.

The original order called for United Bank to raise its capital level and submit detailed plans for dealing with its problem assets, among 27 articles of improvement. According to a United Bank press release, the new order includes eight articles of improvement.

Bryan Hubbard, a public affairs operations officer at the OCC, confirmed United Bank’s original order was terminated April 12, and a new order issued on April 19. Hubbard said the new order is still in the process of being published.

According to the United Bank release, the bank had Tier 1 capital ratio of 11.55 percent, which is higher than the 8 percent required by the order. The bank also posted net income of $451,000 for the most recent quarter.

Nathan Gairhan replaced John Scott as president on United Bank on April 23. Scott, who will remain as an outside director at United Bank, is part of a group that recently purchased a string of Kubota dealerships. Scott is the group’s CEO.