Paragon under federal scrutiny.
Holland, MI —
Federal and state regulators have slapped Paragon Bank & Trust in Holland with a cease-and-desist order seeking improvements in banking operations mostly related to lending and collection issues.
The order was issued by the Federal Deposit Insurance Corp. and the state Office of Financial and Insurance Regulation.
It demands that the bank “cease and desist from the following unsafe or unsound banking practices” including “engaging in hazardous lending and lax collection practices” and “operating with an inadequate level of capital protection,” as well as operating with excessive level of bad assets and loans, inadequate liquidity, inadequate earnings and “inadequate allowance for loan and lease losses.”