Overby to pay $1.7 million
Former First National CEO banned from working at banks
By Robert Cloud
Archie Overby, the former president of First National Bank in Waupaca, must pay $1.6 million in restitution and $100,000 in fines.
The Office of the Comptroller of the Currency, which oversees federally chartered banks, issued the consent order in March and made it public on Friday, April 21.
OCC’s order also prohibits Overby from participating in affairs of or holding a job with any financial institution.
In July 2016, OCC posted a notice of charges against Overby.
Alleging that he “recklessly engaged in unsafe or unsound practices in conducting the affairs of the bank,” the OCC accused Overby of “personal dishonesty” and “a pattern of misconduct, during an extended period of time, that caused the bank loss and from which he received a benefit.”
Overby was a director, president and CEO of First National Bank (FNB) from August 1979 through May 31, 2016. He was made the bank’s chairman in 2005.
Overby owned nearly 18 percent of the stock of Waupaca Bancorporation Inc., FNB’s holding company, by 2013.
From 2005 to 2014, FNB’s total assets grew from $427 million to $795 million, according to FDIC figures.
By the end of 2015, FNB’s total assets had dropped to approximately $548 million, following the sale of branch offices in Texas and the charge-off of more than $16.5 million in loans in 2013 and 2014 combined.
At the end of 2016, FNB’s total assets were down to nearly $479 million.
Between 2010 and 2014, FNB paid Overby a total of $3.57 million in base salary and bonuses.
FNB also paid Overby $59,500 in board and committee membership fees, contributed 100 percent to his 401(k), provided him with a new Cadillac Escalade that cost $86,500 and then transferred the vehicle’s title to him when the bank bought a new car every three years.
OCC described Overby’s compensation as “excessive.”
The OCC said FNB paid Overby more than $1.62 million for personal expenses from 2010 to 2013.
Most of the expenses were for travel, including family trips to Arizona, Texas, New York, Disney World in Florida and the Cayman Islands.
The OCC said FNB paid both the corporate and personal credit card bills related to more than $1.2 million in personal travel expenses over a four-year period.
According to the OCC’s consent order, Overby must pay the $1.6 million in restitution on or before he sells his shares in Waupaca Bancorporation. Payment will be made to FNB.
He must cover the restitution with a lien, promissory note and collateral pledge agreement.
The $100,000 civil penalty will be paid to the U.S. Treasurer’s office, with $25,000 due immediately and the remaining $75,000 due by March 31, 2019.
By entering into the consent order, Overby agreed to waive his rights to judicial review, and OCC agreed not to pursue further proceedings against Overby.