Patriot National Bancorp Inc. (NASDAQ:PNBK), a Connecticut-based commercial bank, announced today that it has entered into a regulatory agreement with the Office of the Comptroller of the Currency (OCC). The agreement, dated January 14, 2025, outlines a series of remedial actions required to enhance the bank's compliance and risk management practices.
The OCC has mandated the appointment of a Compliance Committee by January 31, 2025, to oversee the bank's adherence to the agreement's provisions. This committee, composed primarily of non-employee directors, will be responsible for submitting detailed quarterly progress reports.
A strategic plan is due within 45 days, aimed at establishing objectives for the bank's risk profile, earnings, growth, and other operational aspects. Additionally, by February 28, 2025, Patriot Bank must meet and maintain specified minimum capital ratios, including a common equity tier 1 capital ratio of at least 10.0%.
The bank is also required to submit various plans and assessments to the OCC within specified timeframes. These include a risk management framework, a comprehensive BSA/AML Risk Assessment, and strategies for managing prepaid card products and payment activities. Patriot Bank must also ensure it has a qualified Bank Secrecy Act Officer and a robust Liquidity Risk Management Program.
The OCC has designated Patriot Bank as being in "troubled condition" and not an "eligible bank" for certain regulatory purposes. The OCC's notification on January 17, 2025, also terminated the individual minimum capital ratios previously established for the bank in April 2024.
In a related development, David Finn was officially appointed as Chief Financial Officer of Patriot National Bancorp and the Bank on January 14, 2025. Finn, who has been serving as Interim CFO since October 2024, brings extensive experience from his previous roles at First Citizens Bank and CIT Group (NYSE:CIT) Inc.
The information for this article was obtained from a recent 8-K filing with the Securities and Exchange Commission.
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