The Bank of Star City has agreed to pay an $11,000 civil penalty for violations of the National Flood Insurance Act, the Federal Reserve System disclosed Tuesday.
In the order entered on Monday, the bank agreed to pay the penalty to the National Flood Insurance Program and to comply with the flood insurance law, which requires forbids banks from making loans secured by property in a designated flood zone unless the property is covered by flood insurance.
The order includes no details of the Bank of Star City's violations, and President R. Mark Owen was out of the bank on Tuesday and could not be reached for comment.
Bank of Star City is the 79th largest of the 100 banks chartered in Arkansas with 91.4 million in assets as of Dec. 31. It reported net income of $1.3 million last year.