Order No. 2014-014
In The Matter Of:
Diane R. Parker
Director and Vice President
The Elkhart State Bank
Charter Number 1604-34
Director and Vice President
Elkhart Bancorporation, Inc.
Before The Banking Commissioner of Texas
Austin, Travis County, Texas
CONSENT REMOVAL ORDER
On this day, the matter of DIANE R. PARKER, Elkhart, Texas ("Respondent") was submitted to me, Charles G. Cooper, Banking Commissioner of the State of Texas ("Commissioner"), for consideration and action. Respondent is a director und vice-president of The Elkhart State Bank, Elkhart, Texas (the "Bank"), The Bank is owned 100% by Elkhart Bancorporation, Inc. (the "Holding Company"). Respondent is a director and the vice-president of the Holding Company.
The Texas Department of Banking ("Department") is the appropriate state banking agency to bring this enforcement action pursuant to Texas Finance Code § 35.003, and the Commissioner has jurisdiction over Respondent and the subject matter of this proceeding.
Respondent has been informed that she has the right to receive a proposed order detailing the violations of law or regulation, unsafe or unsound banking practices and/or breaches of fiduciary duty that the Department charges against Respondent. Respondent has been informed and understands that she has the right to a hearing on the alleged charges under Texas Finance Code §§ 35.003(c) and 35.004. Respondent waived those rights and entered into a Stipulation and Consent to the Issuance of a Removal Order ("Consent Agreement") with the Department, which agrees to the disposition of this matter pursuant to the provisions of Texas Government Code § 2001.056.
Respondent entered into the Consent Agreement solely for the purpose of this proceeding, and, without admitting or denying any violations of law or regulations or unsafe or unsound banking practices and/or breaches of fiduciary duty, Respondent consented to the issuance of this Removal Order.
The Commissioner has considered the matter and determines that, based upon bank examination and other credible evidence, that Respondent's actions satisfy the statutory requirements for the issuance of a Removal Order as set forth in Texas Finance Code § 35.003.
In particular, the Commissioner determines that:
- Respondent has intentionally committed or participated in violations of law or regulations, unsafe or unsound practices, and/or breaches of fiduciary duty with regard to the affairs of the Bank;
- Because of these actions by Respondent, the Bank has suffered or will probably suffer financial loss or other damage; the interests of the Bank's depositors and shareholders have been or could be prejudiced; and/or Respondent received financial gain or other benefit by reason of the actions; and
- Such actions involve personal dishonesty on the part of Respondent or demonstrate Respondent's willful und/or continuing disregard for the safety and soundness of the Bank.
The Commissioner further determines that such violations of law or regulations, unsafe or unsound practices, and/or breaches of fiduciary duty demonstrate Respondent's unfitness to serve as a director, officer, or employee of the Bank or the Holding Company. Accordingly, the entry of this Removal Order appears to be necessary and in the best interest of the public.
I.ORDER OF REMOVAL
It is, therefore, ORDERED, ADJUDGED and DECREED that, pursuant to Texas Finance Code § 35.003, DIANE R. PARKER is hereby removed as director and vice-president and from any other employment by the Elkhart State Bank, Elkhart, Texas and as director and vice-president of Elkhart Bancorporation, Inc.
It is further, ORDERED, ADJUDGED and DECREED that, pursuant to Texas Finance Code § 35.007, without prior written approval of the Banking Commissioner, DIANE R. PARKER may not:
- serve as a director, officer, or employee of a state bank, holding company of a state bank, or state trust company, or as a director, officer, or employee with financial responsibility of any other entity chartered, registered, permitted, or licensed by the Banking Commissioner under the laws of this state;
- directly or indirectly participate in any manner in the management of such entity;
- directly or indirectly vote for a director of such an entity; or
- solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to voting rights in such an entity.
This Removal Order against Respondent DIANE R. PARKER is effective August 28, 2014, and is final and nonappealable as of that date. The provisions of this Order will remain effective and in force except in the event that, and until such time as, this Order shall have been modified, terminated, suspended, or set aside in accordance with Texas Finance Code § 35.0071, or other applicable law.
It is so ORDERED.
Signed this 28th day of August, 2014.
/s/ Charles G. Cooper
Charles G. Cooper
Banking Commissioner of the State of Texas
APPROVED AS TO FORM:
/s/ J. Brett Harrison August 27, 2014
J. Brett Harrison
Bain, Files, Jarrett, Bain & Harrison, P.C.
Attorney for Respondent
/s/Deborah H. Loomis August 27, 2014
Deborah H. Loomis
Deputy General Counsel
Texas Department of Banking