Regulators ink compliance deal with Bank of Maine
Federal regulators have inked an agreement with the Bank of Maine in an effort to resolve what they called "unsafe and unsound banking practices."
According to the agreement, released on Aug. 17, between the bank and the Comptroller of the Currency, the bank was found to have "regulatory violations relating to asset quality, credit administration, management, and the Bank's compliance program."
Bank Chairman John W. Everets told the Morning Sentinel that the problems cited in the agreement are "ancient history" and that the agreement is "reflective of a period of time from a year ago, a snapshot of the bank a year ago."
The violations detailed in the agreement stem from a September 2011 Report of Examination by the Comptroller's office.
In part, the recent agreement stipulates that, within 60 days from the signing, the bank form a committee to review compliance in a number of areas, including the development of a risk reduction plan, creation of a three-year strategic plan and reviews of mortgage lending portfolios and practices.
Earlier this month, the bank announced in a press release that it had reached a goal of lending $600 million to customers since January of 2011, when the bank exited from earlier scrutiny from the federal Office of Thrift Supervision.
It was in January 2011 that the regulatory agency terminated two previous orders against the bank: a cease-and-desist order issued in August 2009 that claimed the bank was engaging in "unsafe or unsound practices," and a directive issued in March 2010 ordering the bank to double its capital-to-assets ratio by the end of September 2010.
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