Polk County Bank officials are responding to a cease and desist order issued by its regulator, the Federal Deposit Insurance Corp., related to unsafe lending practices.

According to the order posted online last Friday, the Johnston-based bank was operating with an excessive level of loan losses and delinquent loans, making inadequate allowances for loan and lease losses, and engaging in hazardous and lax collection practices.

Polk County Bank President Tom Miller said the bank alerted both state and federal regulators last January regarding potential deficiencies prior to an examination in May. He said the bank has resolved “98 to 99 percent” of the deficiencies.

The bank has charged off $1.8 million in loans for the year to date and posted a $1.59 million loss in the third quarter. It has also received $1.58 million in additional capital from its holding company, which is 100 percent owned by the Miller family, during the past quarter.

“Our goal is to get through this as quickly as possible,” Miller said, “and that’s our regulator’s goal as well.”

Polk County Bank is the third federally chartered bank with Central Iowa operations to fall under an enforcement action. Community State Bank in Ankeny and First National Bank Midwest of Oskaloosa each entered into formal agreements with the Office of the Comptroller of the Currency in July.