The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

OCC written agreement labels Patriot Bank as being in a ‘troubled condition’

Patriot National Bancorp in Stamford, Conn., which is evaluating strategic options that could include its potential sale, is now operating under a written agreement with the Office of the Comptroller of the Currency that labeled its bank as being in a “troubled condition.”

The $974.1 million-asset company disclosed in a regulatory filing that it must create a compliance committee by Jan. 31 to make sure it addresses the written agreement. The bank must also provide quarterly progress reports to the OCC. Compliance with the Bank Secrecy Act and anti-money laundering laws is part of the agreement.

The agreement also requires the bank to provide a written plan to address its overall risk profile, earnings performance, balance sheet mix and liability structure, among other things. A separate program must be designed to “ensure appropriate collection and analysis of customer information for reloadable prepaid card accounts.”

The bank must maintain a minimum Tier 1 capital ratio of 10%, a total capital ratio of 11.5% and a leverage ratio of 9%.

The company recently hired banking veteran Steven Sugarman as its president.

 

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