On Dec 3, the FDIC issued a Supervisory Prompt Corrective Action Directive to Horizon Bank due to the bank’s critically undercapitalized status as of Sep 30. Horizon Bank received the Directive on Dec 4 and filed a disclosure with the SEC on Dec 8.
Among other provisions, the Directive states:
“the Bank shall take no further action under the previously issued FDIC Order issued on May 24, 1994 ... allowing the Bank to engage in real estate development for single-family residential use up to 25% of the Bank’s Tier 1 capital.” (Emphasis added)
In other words, it appears that the FDIC has just ordered Horizon Bank to terminate its involvement in the Fairhaven Highlands development.
A link to Horizon Bank’s Form 8-K disclosure to the SEC, which includes the FDIC Directive, is provided below.