Regulators tighten reins on Lafayette bank

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State and federal regulators have handed down a string of accusations against Lafayette Community Bancorp, claiming the institution violated safe-banking principles and laws.

The Lafayette-based parent of Lafayette Community Bank didn’t document loans properly or have enough collateral, said the Indiana Department of Financial Institutions and the Federal Deposit Insurance Corp.

The institution also had too many delinquent loans and too few internal controls, according to a report in The Journal & Courier of Lafayette.

The bank says the problems were caused by a loan officer who no longer works at the institution. A bank official said it will comply with orders issued by the agencies to correct the problems.

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