In an effort to straighten things out during tough economic times, Community Bank & Trust has executed a cease and desist order with the Federal Deposit Insurance Corp.

"For many months our organization, like most banks in this economic environment, has worked diligently to improve our financial results and maintain healthy capital levels," Mike Whitmire, the bank’s Hall County division president, said in a prepared statement.

"This basically means that our organization has been asked by the regulators to formally address improvements requiring attention and cooperation. In this case, we have entered into this order cooperatively and will proactively work with the regulators toward our common goal of improved performance."

The FDIC is national organization that is charged by Congress to "maintain stability and public confidence in the nation’s financial system."

In the order, the FDIC mandates that the bank "cease and desist from ... unsafe and unsound banking practices." Bank officials waived rights to a hearing concerning the charges leveled by the FDIC, which according to the federal organization neither is an admission of guilt, nor a denial of the charges.

Although the bank is required to adjust some of its operating practices, the changes are not expected to affect most customers.

"This regulatory action will in no way interfere with the bank’s ability to serve its customers and continue conducting its day-to-day business," Whitmire said.

Among the charges outlined in the order, the bank is required to stop operating "with a large volume of poor quality loans" and "in such a manner as to produce operating losses."

The cease and desist order requires the bank to increase participation of its board of directors with monthly meetings, where the group is expected to review the bank’s income, expenses and loan activity.

In the order, the FDIC also stipulates that the bank is no longer allowed to extend additional credit to borrowers who have loans that have been classified as charge-offs for nonpayment.

"When we successfully make it to the other side of this (economic) downturn, we will do so stronger, more efficiently and better able to serve all the needs of our customers in ever community we call home," said Whitmire.

The cease and desist order affects all branches of the bank, including the locations in Hall, Jackson, White and Banks counties.