Riverview Community Bank in Otsego, Minn., has been cited by the FDIC in connection with “unsafe and unsound banking practices.” Former Secretary of State and current Rep. Mary Kiffmeyer, R-Big Lake, is an owner and director of the bank — a bank that founders say was inspired by the hand of God.
But it seems God hasn’t spared the bank from the national economic downtown. According to FDIC documents (PDF), Riverview invested heavily in real estate and was operating with too few reserves.
“The FDIC considered the matter and determined that it had reason to believe that the Bank had engaged in unsafe and unsound banking practices and violations of law and/or regulation,” according to the FDIC’s order to cease and desist certain lending practices until the unsound practices are rectified.
It cited Riverview with a number of regulation violations, including “operating with a board of directors that has failed to provide adequate supervision over and direction to the management of the Bank, engaging in hazardous lending and lax collection practices, operating with excessive loan losses and with an excessive level of adversely classified loans or assets, operating with inadequate liquidity in light of the Bank’s asset and liability mix and operating with an inadequate risk rating and loan review system.”
The bank is directed by the FDIC to take corrective action to remedy the issues giving the bank 30 to 60 days to implement a new loan review system and improve liquidity.
The bank made news when it was founded in 2003 after founder Chuck Ripka said he heard the voice of God say, “Chuck, if you do all the things I told you to do, I promise you I will take care of the bottom line.”
Ripka told the Pioneer Press in 2004 that 77 people had “invited Christ into their lives” and that 70 “physical healings” had occurred.
The Lord would make the bank such a success that Ripka would be compelled to “tell the truth about what God is doing here,” he said.
Ripka left the bank in 2006, but Kiffmeyer is still listed as director and owner according to campaign disclosure records.
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