The Office of the Comptroller of the Currency has determined that 42 North Private Bank in Canton, Mass., is in “troubled condition” and not an “eligible savings association.”
The agency shared the assessment in a January cease-and-desist order against the $210 million-asset bank. The C&D order came after the OCC determined that 42 North failed to fully comply with a 2017 consent order tied to claims of unsafe or unsound practices.
At the time of the first order, which was designed to address credit administration, liquidity, earnings, and IT practices, the institution was known as Admirals Bank.
The OCC determined in its new order that “new unsafe or unsound practices exist” at the bank.
The bank, while neither admitting nor denting the findings, agreed to develop a new strategic plan to set objectives for its overall risk profile, earnings performance, growth, liability structure, and capital and liquidity adequacy. The plan must include strategic goals and objectives and a SWOT analysis.
The bank must secure OCC approval before initiating any major changes to its strategic plan. It must boost its Tier 1 capital ratio to at least 9% and its total capital ratio to 13%. The order also requires a written interest rate risk program and a written liquidity risk management program.
The OCC said it “expressly reserves its right to assess civil money penalties or take other enforcement actions” if it determines that the bank has failed to address the practices that brought about the C&D order.