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FDIC terminated insurance at six banks in June 2026

The Federal Deposit Insurance Corporation removed deposit protections from financial institutions across multiple states and issued enforcement orders against individuals and institutions in the second quarter of 2026.

By Scroll Insights News Desk

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Prime Meridian Bank in Tallahassee, Florida; Meadows Bank in Las Vegas, Nevada; Gold Coast Bank in Chicago, Illinois; Marine Bank & Trust Company in Vero Beach, Florida; Heritage Bank of St Tammany in Covington, Louisiana; and Bank of Labor in Overland Park, Kansas all had FDIC insurance terminated in June 2026. Insurance termination removes the federal safety net protecting customer deposits at those institutions.

Individual prohibition orders rose in the second quarter

The FDIC issued orders of prohibition barring individuals from banking industry participation in May and June 2026. Eight people affiliated with various institutions received such orders, preventing them from serving as officers, directors, or employees at insured banks. Among those affected were Brandon G. Emrick and Dethra Thomas at Truist Bank in Charlotte, North Carolina; Amar B. Ali at Spectra Bank in Fort Worth, Texas; and Russell Lucius Laffitte at Palmetto State Bank in Hampton, South Carolina. Emrick also received a concurrent order for restitution.

Consent orders and terminations track supervision activity

Consent orders—agreements between banks and regulators addressing compliance or operational deficiencies—were issued to Connect Community Bank in Raymond, Washington and Lineage Bank in Franklin, Tennessee in June 2026, while Herring Bank in Amarillo, Texas saw its consent orders terminated in May after having a notice of charges issued against an affiliated party in April 2026. Six terminations of pre-existing orders were also included in May 2026 enforcement actions under Section 19 of the FDI Act, relating to Liberty Bank, Inc. in Salt Lake City, Utah and Brighton Bank in Brighton, Tennessee.

Financial penalties and monetary orders

Oriental Bank in San Juan, Puerto Rico received an order to pay a civil money penalty in June 2026, as did Planters Bank & Trust Company in Indianola, Mississippi and Alliance Community Bank in Petersburg, Illinois in May. Paramount Bank in Hazelwood, Missouri received a combined consent order and order to pay in June 2026. Independence Bank in East Greenwich, Rhode Island accepted voluntary termination of insured status in May, while John C. Ponte, an affiliated party of that institution, faced a decision and order denying modification of a restitution requirement.

Publication schedule of enforcement actions

The FDIC published lists of administrative enforcement orders on May 29, 2026 for April actions, June 26, 2026 for May actions, and July 31, 2026 for June actions. No administrative hearings were scheduled for June, July or August 2026 as of the announcements made during those periods.

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