FEDERAL
DEPOSIT INSURANCE CORPORATION

    


    WASHINGTON,
D.C.

    


    AND

    


    COMMONWEALTH
OF KENTUCKY

    


    DEPARTMENT
OF FINANCIAL INSTITUTIONS

    


    FRANKFORT,
KENTUCKY

    
      
        	 
      	 
      	 
      
	 
      	
                )

              	 
      
	
                In
      the Matter of

              	
                )

              	
                STIPULATION
      AND CONSENT

              
	 
      	
                )

              	
                TO
      THE ISSUANCE OF A

              
	
                FIRST
      FEDERAL SAVINGS BANK OF

              	
                )

              	
                CONSENT
      ORDER

              
	
                ELIZABETHTOWN

              	
                )

              	 
      
	
                ELIZABETHTOWN,KENTUCKY

              	
                )

              	
                FDIC-10-817b

              
	 
      	
                )

              	 
      
	
                (Insured
      State Nonmember Bank)

              	
                )

              	 
      
	 
      	
                )

              	 
      


      

    

     

    Subject to the acceptance of this
STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER ("STIPULATION") by
the Federal Deposit Insurance Corporation ("FDIC") and the Commonwealth of
Kentucky, Department of Financial Institutions (“DFI”), it is hereby stipulated
and agreed by and among representatives of the FDIC, the DFI and First Federal
Savings Bank of Elizabethtown, Elizabethtown, Kentucky ("Bank") as
follows:

     

    1.           The
Bank has been advised of its right to receive a NOTICE OF CHARGES AND OF HEARING
("NOTICE") detailing the unsafe and unsound banking practices and violations of
law, rule or regulation alleged to have been committed by the Bank and of its
right to a hearing on the charges under section 8(b) of the Federal Deposit
Insurance Act ("Act"), 12 U.S.C. § 1818(b), and under section 286.3-690 of the
Kentucky Revised Statutes, Ky. Rev. Stat. Ann. § 286.3-690 (Michie 2006),
regarding hearings before the DFI, and has knowingly waived that
right.


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    2.           The
Bank, solely for the purpose of this proceeding and without admitting or denying
any of the charges of unsafe or unsound banking practices and violations of law,
rule or regulation, hereby consents and agrees to the issuance of a CONSENT
ORDER ("ORDER") by the FDIC and DFI.

     

    3.           The
Bank further stipulates and agrees that such ORDER shall be deemed to be a
consent order which has become final and unappealable, and that the ORDER shall
become effective upon its issuance by the FDIC
and the DFI and fully enforceable by the FDIC and the DFI pursuant to the
provisions of section 8(i) of the Act, 12 U.S.C. § 1818(i), and under section
286.3-690 of the Kentucky Revised Statutes, Ky. Rev. Stat. Ann. § 286.3-690
(Michie 2006), respectively, subject only to the conditions set forth in
paragraph 4 of this STIPULATION.

     

    4.           In
the event the FDIC and the DFI accept this STIPULATION and issue the ORDER, it
is agreed that no action to enforce the ORDER will be taken by the FDIC in the
United States District Court or the appropriate Federal Circuit Court or by the
DFI in the appropriate State Circuit Court unless the Bank, any Bank
institution-affiliated party, as that term is defined in section 3(u) of the
Act, 12 U.S.C. § 1813(u), or any of its successors or assigns, has violated or
is about to violate any provision of the ORDER.


    
      
         


      

      
        2

        
          

        

      

      
         


      

    


    5.           The
Bank hereby waives:

     

    (a)           The
receipt of a NOTICE;

     

    (b)           All
defenses and counterclaims of any kind to this
proceeding;

     

    (c)           A
hearing for the purpose of taking evidence on the
allegations in the NOTICE;

     

    (d)           The
filing of proposed findings of fact and conclusions
of law;

     

    (e)           A
recommended decision of an Administrative Law Judge;
and

     

    (f)           Exceptions
and briefs with respect to such recommended
decision.

     

    Dated this 18th day of
January,
2011.

    


    
      
        
          
            
              
                	
                        FEDERAL
      DEPOSIT INSURANCE

                      	 
      	
                        FIRST
      FEDERAL SAVINGS BANK OF

                      
	
                        CORPORATION,

                      	 
      	
                        ELIZABETHTOWN

                      
	
                        LEGAL
      DIVISION

                      	 
      	
                        ELIZABETHTOWN,
      KENTUCKY

                      
	 
      	 
      	 
      
	
                        By:

                      	 
      	
                        By:

                      
	 
      	 
      	 
      
	
                        /s/ Erin O. Gallaher

                      	 
      	
                        /s/ Robert M. Brown

                      
	
                        Erin
      O. Gallagher

                      	 
      	
                        Robert
      M. Brown

                      
	
                        Senior
      Regional Attorney

                      	 
      	
                        Director

                      
	
                        Federal
      Deposit Insurance

                      	 
      	 
      
	
                        Corporation

                      	 
      	 
      
	 
      	 
      	
                        /s/ Walter D. Huddleston

                      
	
                        And,

                      	 
      	
                        Walter
      D. Huddleston

                      
	 
      	 
      	
                        Chairman
      of the
Board

                      


              

            

          

        

      

    


    
      
         


      

      
        3

        
          

        

      

      
         


      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            COMMONWEALTH
      OF KENTUCKY,

                                          	 
      	
                                            /s/ B. Keith Johnson

                                          
	
                                            DEPARTMENT
      OF FINANCIAL

                                          	 
      	
                                            B.
      Keith Johnson

                                          
	
                                            INSTITUTIONS

                                          	 
      	
                                            Chief
      Executive
Officer

                                          


                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
 

    
      
        	
                /s/ Charles A. Vice

              	 
      	 
      
	
                Charles
      A. Vice

              	 
      	 
      
	
                Commissioner

              	 
      	
                /s/ Diane E. Logsdon

              
	 
      	 
      	
                Diane
      E. Logsdon

              
	 
      	 
      	
                Director

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/ Stephen Mouser

              
	 
      	 
      	
                Stephen
      Mouser

              
	 
      	 
      	
                Director

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/ John L. Newcomb

              
	 
      	 
      	
                John
      L. Newcomb

              
	 
      	 
      	
                Director

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/ J. Alton Rider

              
	 
      	 
      	
                J.
      Alton Rider

              
	 
      	 
      	
                Director

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/ Donald M. Scheer

              
	 
      	 
      	
                Donald
      M. Scheer

              
	 
      	 
      	
                Director

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/ Gail L. Schomp

              
	 
      	 
      	
                Gail
      L. Schomp

              
	 
      	 
      	
                Director

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/ Michael L. Thomas

              
	 
      	 
      	
                Michael
      L. Thomas

              
	 
      	 
      	
                Director

              
	 
      	 
      	 
      
	 
      	 
      	
                Comprising
      the Board of

              
	 
      	 
      	
                Directors
      of

              
	 
      	 
      	
                FIRST
      FEDERAL SAVINGS BANK OF

              
	 
      	 
      	
                ELIZABETHTOWN

              
	 
      	 
      	
                ELIZABETHTOWN,
      KENTUCKY

              


      

    

     

    
      
         


      

      
        4