Federal ReserveProhibition Orderhigh

Heritage State Bank

Lawrenceville, Illinois

The Federal Reserve Board on Jul 16, 2026, announced a prohibition order against James Burns, former chief lending officer of Heritage State Bank in Lawrenceville, Illinois. The order stems from appraisal-related lending misconduct. A prohibition order bars the named individual from participating in the affairs of any insured depository institution.

Burns held the chief lending officer role at the community bank prior to the action. The Federal Reserve published the enforcement action alongside an attached PDF detailing the order.

Implications
  1. Reinforces Federal Reserve focus on lending controls and appraisal integrity at community banks
  2. Individual prohibition orders serve as a deterrent for compliance failures across the banking sector, including sponsor banks
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