Phillips resigned as the bank's president in 2005 after the bank was cited by the Office of the Comptroller of Currency for unsound business practices. The bank was subsequently acquired by M&F Bank. Phillips serves on the executive board of the Alabama Public Library Service.
Phillips was indicted by a grand jury on February 26, 2009 of bank fraud, stemming from a loan Phillips took out with First National in the name of her housekeeper and attempted to hide it from auditors. She was convicted on two counts of bank fraud and one count of obstructing a bank examination on July 31, 2009. On December 22 she was sentenced to 6 months in prison.
- Ray, Tiffany (February 10, 2006) "Buyers of Shelby bank eager to take control." Birmingham Business Journal
- Gordon, Robert K. (February 27, 2009) "Former First National Bank of Shelby County president indicted on fraud charge." Birmingham News
- "Former bank president convicted of fraud." (July 31, 2009) Shelby County Reporter
- "Former bank president sentenced for bank fraud." (December 22, 2009) Leeds Herald