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Manchester, Iowa - Randy Johnson, Chad Kellogg, and Jeffrey Hines, all of whom previously held senior positions at Farmers and Merchants Savings Bank (FMB), have received enforcement actions by the Federal Reserve Board, after allegations of the misappropriation of confidential bank records by each of the former employees during their transition to other financial institutions.

Key Points

• Randy Johnson, employed at FMB from 2006 to 2021, served as Executive Vice President. In March 2021, he resigned and began working at a different financial institution not supervised by the Board of Governors. Johnson misappropriated confidential FMB information to facilitate the transfer of FMB customers to his new employer.
• Chad Kellogg, serving as Senior Vice President for Commercial Lending from 2006 to 2021 at FMB, followed a similar path as Johnson. He resigned in March 2021 and misappropriated FMB confidential information during his transition.
• Jeffrey Hines was employed at FMB from 2018 to 2021 as Senior Vice President for Commercial Banking. In March 2021, he resigned and joined another financial institution, during which he misappropriated FMB's confidential information.
• All three were accused of unsafe practices and a breach of fiduciary duty, causing harm to FMB.
• The Federal Reserve Board has ordered each of the three individuals to pay a civil money penalty of $50,000, and that before accepting any position at another bank, each must notify the CEO of the new institution with a copy of the order and provide written notice and certification of compliance to the Board of Governors.