Shelbyville, Ky. (WDRB) -- It is a Shelby County-based bank that got into financial trouble as a result of the Great Recession of 2008.
But a consent order issued by the Federal Deposit Insurance Corporation (FDIC) against Citizens Union Bank has been lifted by the federal agency that oversees the banking industry.
Bank president David Bowling says C.U.B. is profitable again after working with federal regulators for the past three and a half years.
"We feel good about what we have done," says bank president David Bowling, "and quite frankly it has been a good partnership with the regulators through this process.
The FDIC, the federal agency that regulates banks, has released Citizens Union from a number of restrictions it was under.
"We've spent a lot of time working with the regulators to implement new policies," says Bowling, "changing various procedures, really trying to correct some credit issues we had.
The bank got into financial trouble after the collapse of the housing industry during the recession, with developers defaulting on too many of the bank's loans.
Now bank management says it changed its lending practices, not relying so much on just the residential housing market. "We've added some resources that enable us to do different types of loans," explains Bowling, especially small business loans that in the past we had not concentrated in that area."
The bank also made some changes in its management team -- about half of the team is new.
Says bank CEO Darryl Traylor, "We feel like we are a better bank from what we have been through and we think we are well positioned to now go forward and to grow."
The lifting of the consent order comes at a good time as the bank is celebrating 125 years in business.
"If you think about it," says Bowling, "we went through the Great Depression and now the Great Recession, so this bank has been through some tough times, but it is all about the communities where we operate."
Bank management believes it has weathered the storm and emerged a stronger healthier bank.
Citizens Union Bank has 15 locations in Shelby County and the Louisville area.
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