A former senior vice president at Harbor Bank of Maryland has been banned from banking after allegations that he engaged in unsafe banking practices, the Federal Deposit Insurance Corp. announced Friday.
David M. Terrance, who also had been a senior lending officer at the Baltimore bank, agreed to the ban without admitting or denying any violations, according to the FDIC. Terrance started at the bank in October 2006 and left in February 2008.
Joseph Haskins Jr., chairman and chief executive of Harbor Bank, said the activity in question occurred a couple of years ago.
Haskins declined to provide details but said Terrance was found to have established a side business that rewarded him with profits while he made commercial loans for the bank.
"The amount in terms of what he did was not anything of size," Haskins said.
The bank uncovered the activity about two years ago and reported it to federal regulators, Haskins said.
Terrance could not be reached for comment. A phone number listed under his name in Silver Spring had been disconnected.
According to the FDIC order, Terrance engaged in "violations, unsafe or unsound banking practices" that involved "personal dishonesty" and a willful disregard for the safety and soundness of the bank.
Regulators said Terrance was unfit to serve as a director, officer or other positions at a bank or federally insured institution.