STRATEGIC PLAN. (1) Within ninety (90) days, the Board shall forward to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a written Strategic Plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shall, at a minimum, include: (a) a mission statement that forms the framework for the establishment of strategic goals and objectives; (b) a description of the Bank's targeted market(s) and an assessment of the current and projected risks and competitive factors in its identified target market(s); (c) the strategic goals and objectives to be accomplished and actions to be taken to achieve identified goals and objectives, including specific time frames; (d) specific actions to improve Bank earnings and asset quality, to reduce the level of concentrations of credit and funding costs, and to reduce reliance on non-core funding; (e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time frames; (f) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan; (g) a description of the assumptions used to determine financial projections and growth targets; (h) an identification and risk assessment of the Bank's present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in the Strategic Plan, with the requirement that the risk assessment of new product lines must be completed prior to the offering of such product lines; (i) a description of control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's operating environment; (j) assigned responsibilities and accountability for the strategic planning process, new products, growth goals, and proposed changes in the Bank's operating environment; and (k) a description of systems to monitor the Bank's progress in meeting the Strategic Plan's goals and objectives. (2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to: (a) resolution of problem assets (including related costs); (b) viable sources of liquidity (including related costs); (c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and (d) ongoing viability of the bank based on current financial and market conditions. (3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank. (4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan. (5) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy to the Assistant Deputy Comptroller. (6) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments or revisions, shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Plan. (7) The Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advance, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Plan. (8) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Banking Agreement
STRATEGIC PLAN. (1) Within ninety one hundred fifty (90150) days, the Board shall forward adopt, implement, and thereafter ensure Bank adherence to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a written Strategic Plan strategic plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan strategic plan shall establish objectives for the Bank's ’s overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shallobjectives and, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description of the Bank's targeted market(s) and an assessment of the current Bank’s present and projected risks and competitive factors in its identified target market(s)future operating environment;
(c) the development of strategic goals and objectives to be accomplished over the short and actions to be taken to achieve identified goals and objectives, including specific time frameslong term;
(d) specific actions to improve Bank earnings and asset quality, to reduce the level of concentrations of credit and funding costs, and to reduce reliance on non-core funding;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time frames;
(f) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan;
(g) a description of the assumptions used to determine financial projections and growth targets;
(h) an identification and risk assessment of the Bank's ’s present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (1 )(c) of this Article;
(e) an evaluation of the Strategic PlanBank’s internal operations, with staffing requirements, board and management information systems and policies and procedures for their adequacy and contribution to the requirement accomplishment of the goals and objectives developed under (1)(c) of this Article;
(f) a management employment and succession program to promote the retention and continuity of capable management;
(g) product line development and market segments that the risk assessment of new product lines must be completed prior Bank intends to the offering of such product linespromote or develop;
(h) an action plan to improve bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames;
(i) a description of financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the strategic plan;
(j) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's ’s operating environment;
(jk) assigned specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, and or proposed changes in the Bank's ’s operating environment; and
(kl) a description of systems to monitor the Bank's ’s progress in meeting the Strategic Plan's plan’s goals and objectives.
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy to the Assistant Deputy Comptroller.
(6) Prior to adoption by the BoardUpon adoption, a copy of the Strategic Plan, and any subsequent amendments or revisions, plan shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Planstrategic plan.
(73) The Board shall ensure that the Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advancehas processes, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitorpersonnel, and control systems to ensure implementation of and adherence to the risks associated with the change in the Strategic Plan.
(8) For the purposes of plan developed pursuant to this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Agreement Between Cadence Bank and the Comptroller of the Currency (Cadence Financial Corp)
STRATEGIC PLAN. (1) Within ninety sixty (9060) days, the Board shall forward review and revise as necessary, and thereafter ensure Bank adherence to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a its written Strategic Plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shall, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description of the Bank's targeted market(s) and an assessment of the current and projected risks and competitive factors in its identified target market(s);
(c) the strategic goals and objectives to be accomplished and actions to be taken to achieve identified goals and objectives, including specific time framesaccomplished;
(dc) specific actions to improve Bank earnings and asset quality, to reduce accomplish the level of concentrations of credit identified strategic goals and funding costs, and to reduce reliance on non-core fundingobjectives;
(ed) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time framestimeframes;
(fe) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan;
(gf) a description of the assumptions used to determine financial projections and growth targets;
(hg) an identification a management employment and risk assessment succession program to promote the retention and continuity of the Bank's present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in the Strategic Plan, with the requirement that the risk assessment of new product lines must be completed prior to the offering of such product linescapable management;
(i) a description of control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's operating environment;
(j) assigned responsibilities and accountability for the strategic planning process, new products, growth goals, and proposed changes in the Bank's operating environment; and
(kh) a description of systems to monitor the Bank's progress in meeting the Strategic Plan's goals and objectives.
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthlyquarterly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates evaluate the Bank's performance against the goals and objectives established in the Strategic Plan., as well as the Bank's written explanation of significant differences between actual and projected balance sheet, income statement, and expense accounts, including descriptions
(53) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of based on the Bank’s financial performance 's monthly reports, analyses, and variance reports. The evaluation should also include an explanation written explanations of any differences between actual performance and the established Strategic Plan Bank's strategic goals and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statementsobjectives, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the The Board shall submit a copy of the evaluation and Board minutes to the Assistant Deputy Comptroller.
(64) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments or revisions, shall be forwarded to the Assistant Deputy Comptroller for review and a prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Plan.
(7) The Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advance, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Plan.
(8) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.ARTICLE V
Appears in 1 contract
Sources: Banking Agreement (CNB Corp /Sc/)
STRATEGIC PLAN. (1) Within ninety one-hundred and twenty (90120) daysdays of the date of this Agreement, the Board shall prepare and forward to the Assistant Deputy Comptroller for his reviewDirector, pursuant to paragraph (63) of this Article, a revised written Strategic Plan for the Bank that is acceptable to the Assistant Deputy ComptrollerBank, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan shall establish objectives for the Bank's ’s overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital and liquidity adequacy, reduction in the volume of nonperforming assets, product line development, development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shall, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description of the Bank's targeted market(s) and an assessment of the current and projected risks and competitive factors in its identified target market(s);
(c) the strategic goals and objectives to be accomplished accomplished, including key financial indicators and actions to be taken to achieve identified risk tolerances;
(c) an assessment of the Bank’s strengths, weaknesses, opportunities and threats that impact its strategic goals and objectives, including specific time frames;
(d) specific actions a risk profile that evaluates credit, interest rate, liquidity, price, operational, compliance, strategic and reputation risks in relationship to improve Bank earnings and asset qualitycapital, to reduce the level of concentrations of credit and funding costsearnings, and the Bank’s current and projected financial condition and ability to reduce reliance on non-core fundingwithstand periods of stress;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective an evaluation of the Strategic PlanBank’s internal operations, including specific time framesstaffing requirements, board and management information systems, policies, and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under paragraph (1)(b) of this Article;
(f) a management employment and succession plan designed to promote adequate staffing and continuity of capable management;
(g) a realistic and comprehensive annual budget that corresponds to the Strategic Plan’s goals and objectives;
(h) an action plan to improve and sustain the Bank’s earnings and accomplish identified strategic goals and objectives;
(i) a financial forecast, forecast to include projections for major balance sheet and income statement accounts, targeted accounts and desired financial ratios, and growth projections ratios over the period covered by the Strategic Plan;
(gj) a detailed description and assessment of major capital expenditures required to achieve the goals and objectives of the Strategic Plan;
(k) an identification and prioritization of initiatives and opportunities, including timeframes that comply with the requirements of this Agreement
(l) a description of the assumptions used Bank’s target market(s) and competitive factors in its identified target market(s), and a description of controls systems to determine financial projections and growth targetsmitigate risks in the Bank’s target market(s);
(hm) an identification and risk assessment of the Bank's present and planned future product lines and services on or off-balance sheet and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lines and services;
(assets and liabilitiesn) that will be utilized to accomplish concentration limits commensurate with the Bank’s strategic goals and objectives established in the Strategic Plan, with the requirement that the and risk assessment of new product lines must be completed prior to the offering of such product linesprofile;
(i) a description of control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's operating environment;
(jo) assigned responsibilities roles, responsibilities, and accountability for the strategic planning process, new products, growth goals, and proposed changes in the Bank's operating environment; and
(kp) a description of systems and metrics designed to monitor the Bank's ’s progress in meeting the Strategic Plan's ’s goals and objectives.
(2) The Board shall also include as part If the Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger of the Bank’s , the Strategic Plan whether shall, at a minimum, address the steps that shall be taken and the associated timeline to sell, merge or liquidate effect the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution implementation of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditionsthat alternative.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy to the Assistant Deputy Comptroller.
(6) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments amendments, revisions, or revisionsupdates, shall be forwarded submitted to the Assistant Deputy Comptroller Director for review and prior written determination of no supervisory objection. Upon receiving At the next Board meeting following receipt of the Director’s written determination of no supervisory objection, the Board shall adopt and Bank management, subject to Board review and ongoing monitoring, shall immediately implement and thereafter ensure adherence to the Strategic Plan and any amendments or revisions thereto.
(4) Until the Strategic Plan required under this Article has been submitted by the Bank for the Director’s review, has received a written determination of no supervisory objection from the Assistant Deputy ComptrollerDirector and has been adopted by the Board, the Board shall adopt and the Bank shall not significantly deviate from the products, services, asset composition and size, funding sources, structure, operations, policies, procedures, and markets of the Bank that existed immediately implement and adhere before the effective date of this Agreement without first obtaining the Director’s prior written determination of no supervisory objection to the Strategic Plansuch significant deviation.
(75) The Bank may not initiate any action that significantly deviates significantly from the Board- approved a Strategic Plan without a (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give Director and has been adopted by the Assistant Deputy Comptroller advance, Board) without a prior written notice determination of its intent to deviate significantly no supervisory objection from the Strategic Plan, along with Director.
(6) Any request by the Bank for prior written determination of no supervisory objection to a significant deviation described in paragraphs (4) or (5) of this Article shall be submitted in writing to the Director at least thirty (30) days in advance of the proposed significant deviation. Such written request by the Bank shall include an assessment of the impact effects of such proposed change on the Bank's condition’s condition and risk profile, including a profitability analysis and an evaluation of the adequacy of the Bank's ’s organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Planproposed change.
(8) 7) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's ’s marketing strategies, products and services, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact effect on the Bank's ’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's ’s operations or financial performance.
(8) At least monthly, the Board shall review financial reports and earnings analyses to evaluate the Bank’s performance against goals and objectives established in the Strategic Plan, as well as the Bank’s written explanation of significant differences between the actual and projected balance sheet, income statement, and expense accounts. For purposes of this paragraph, “personnel” This review shall include a description of the presidentactions the Board will require the Bank to take to address any deficiencies.
(9) At least quarterly, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member a written evaluation of the Bank's ’s performance against the Strategic Plan shall be prepared by Bank management and submitted to the Board. Within ten
(10) days after submission of the evaluation, the Board shall review the evaluation and determine the corrective actions the Board will require Bank management to take to address any identified shortcomings. The Board’s review of Directorsthe evaluation and discussion of any required corrective actions to address any identified shortcomings shall be documented in the Board’s meeting minutes. The Board shall submit a copy of the written evaluation to the Director within ten (10) days of completion of its quarterly written review, or as well as a detailed description of the corrective actions the Board will require the Bank to take to address any other position subsequently identified in writing by the Assistant Deputy Comptrollershortcomings.
Appears in 1 contract
Sources: Formal Agreement
STRATEGIC PLAN. (1) Within ninety sixty (9060) days, the Board shall forward review and revise as necessary, and thereafter ensure Bank adherence to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a its written Strategic Plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shall, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description of the Bank's targeted market(s) and an assessment of the current and projected risks and competitive factors in its identified target market(s);
(c) the strategic goals and objectives to be accomplished and actions to be taken to achieve identified goals and objectives, including specific time framesaccomplished;
(dc) specific actions to improve Bank earnings and asset quality, to reduce accomplish the level of concentrations of credit identified strategic goals and funding costs, and to reduce reliance on non-core fundingobjectives;
(ed) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time framestimeframes;
(fe) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan;
(gf) a description of the assumptions used to determine financial projections and growth targets;
(hg) an identification a management employment and risk assessment succession program to promote the retention and continuity of the Bank's present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in the Strategic Plan, with the requirement that the risk assessment of new product lines must be completed prior to the offering of such product linescapable management;
(i) a description of control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's operating environment;
(j) assigned responsibilities and accountability for the strategic planning process, new products, growth goals, and proposed changes in the Bank's operating environment; and
(kh) a description of systems to monitor the Bank's progress in meeting the Strategic Plan's goals and objectives.
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthlyquarterly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates evaluate the Bank's performance against the goals and objectives established in the Strategic Plan, as well as the Bank's written explanation of significant differences between actual and projected balance sheet, income statement, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. The Bank shall submit a copy of these reports to the Assistant Deputy Comptroller upon completion.
(53) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of based on the Bank’s financial performance 's monthly reports, analyses, and variance reports. The evaluation should also include an explanation written explanations of any differences between actual performance and the established Strategic Plan Bank's strategic goals and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statementsobjectives, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the The Board shall submit a copy of the evaluation and Board minutes to the Assistant Deputy Comptroller.
(64) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments or revisions, shall be forwarded to the Assistant Deputy Comptroller for review and a prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Plan.
(7) The Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advance, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Plan.
(8) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Banking Agreement
STRATEGIC PLAN. (1) Within ninety (90) days, the Board shall forward adopt, implement, and thereafter ensure Bank adherence to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a written Strategic Plan strategic plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan strategic plan shall establish objectives for the Bank's overall risk profileprofile and prudent risk diversification, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shallobjectives and, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description an assessment of the Bank's targeted market(s) present and an assessment of the current and projected risks and competitive factors in its identified target market(s)future operating environment;
(c) the development of strategic goals and objectives to be accomplished over the short and actions to be taken to achieve identified goals and objectives, including specific time frameslong term;
(d) specific actions to improve Bank earnings and asset quality, to reduce the level of concentrations of credit and funding costs, and to reduce reliance on non-core funding;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time frames;
(f) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan;
(g) a description of the assumptions used to determine financial projections and growth targets;
(h) an identification and risk assessment of the Bank's ’s present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (1 )(c) of this Article;
(e) an evaluation of the Strategic PlanBank's internal operations, with staffing requirements, board and management information systems and policies and procedures for their adequacy and contribution to the requirement accomplishment of the goals and objectives developed under (1)(c) of this Article;
(f) a management employment and succession program to promote the retention and continuity of capable management;
(g) product line development and market segments that the risk assessment of new product lines must be completed prior Bank intends to the offering of such product linespromote or develop;
(h) an action plan to improve bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames;
(i) a description of financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the strategic plan;
(j) control systems to mitigate risks associated with current and planned new products, growth, or any proposed changes in the Bank's ’s operating environment;
(jk) assigned specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, and or proposed changes in the Bank's ’s operating environment; and
(kl) a description of systems to monitor the Bank's ’s progress in meeting the Strategic Plan's plan’s goals and objectives.
(2) The Board shall also include as part of Prior to implementing the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthlystrategic plan, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare forward a written evaluation copy of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy plan to the Assistant Deputy Comptroller.
(6) Prior Comptroller for a written determination of no objection. If the Board adopts any significant changes to adoption by the Boardplan, a copy of the Strategic Plan, and any subsequent amendments or revisions, such changes shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptrollerobjection, prior to the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Plan.
(7) The Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advance, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of implementing such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Plan.
(8) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performancechanges. For purposes of this paragraph, “personnel” "significant changes" shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of changes involving the Bank's strategy or philosophy, scope of activities, lines of business, funding sources, markets or delivery systems.
(3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of Directors, or any other position subsequently identified in writing by and adherence to the Assistant Deputy Comptrollerplan developed pursuant to this Article.
Appears in 1 contract
Sources: Banking Agreement
STRATEGIC PLAN. (1) Within ninety (90) days, the Board shall forward revise, implement, and thereafter ensure Bank adherence to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a written Strategic Plan strategic plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan strategic plan shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shallobjectives and, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description an assessment of the Bank's targeted market(s) present and an assessment of the current and projected risks and competitive factors in its identified target market(s)future operating environment;
(c) the development of strategic goals and objectives to be accomplished over the short and actions to be taken to achieve identified goals and objectives, including specific time frameslong term;
(d) specific actions to improve Bank earnings and asset quality, to reduce the level of concentrations of credit and funding costs, and to reduce reliance on non-core funding;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time frames;
(f) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan;
(g) a description of the assumptions used to determine financial projections and growth targets;
(h) an identification and risk assessment of the Bank's ’s present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (1)(c) of this Article;
(e) an evaluation of the Strategic PlanBank's internal operations, with staffing requirements, board and management information systems and policies and procedures for their adequacy and contribution to the requirement accomplishment of the goals and objectives developed under (1)(c) of this Article;
(f) the development of capital trigger points based on risk upon which the Board will take additional action to maintain appropriate capital ratios;
(g) the primary source(s) from which the Bank will strengthen its capital structure to meet the Bank's needs and contingency plans that identify alternative methods should the primary source(s) not be available;
(h) product line development and market segments that the risk assessment of new product lines must be completed prior Bank intends to the offering of such product linespromote or develop;
(i) an action plan to improve Bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames;
(j) a description of financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the strategic plan;
(k) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's ’s operating environment;
(jl) assigned specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, and or proposed changes in the Bank's ’s operating environment; and
(km) a description of systems to monitor the Bank's ’s progress in meeting the Strategic Plan's plan’s goals and objectives.
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy to the Assistant Deputy Comptroller.
(6) Prior to adoption by the BoardUpon adoption, a copy of the Strategic Plan, and any subsequent amendments or revisions, plan shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Planstrategic plan.
(73) The Bank may not initiate any action that deviates significantly from Board shall review and update the Board- approved Strategic Plan without a Bank's plan on an annual basis, or more frequently if necessary. Any revisions to the plan shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advance, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Planobjection.
(8) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Banking Agreement
STRATEGIC PLAN. (1) Within ninety (90) days, the Board shall forward to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a written Strategic Plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan shall establish objectives and projections for the Bank's ’s overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital and liquidity adequacy, reduction in the volume of nonperforming assets, product line development, development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and it shall, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description the development of the Bank's targeted market(s) and an assessment of the current and projected risks and competitive factors in its identified target market(s);
(c) the strategic goals and objectives to be accomplished over the short and actions long term, including key financial indicators, risk tolerances, and realistic strategies to be taken to achieve identified improve the overall condition of the Bank;
(c) an assessment of the Bank’s strengths, weaknesses, opportunities, and threats that impact strategic goals and objectives, including specific time frames;
(d) specific actions an evaluation of the Bank’s internal operations, staffing requirements, Board and management information systems and policies and procedures for their adequacy and contribution to improve Bank earnings the accomplishment of the goals and asset quality, to reduce the level objectives developed under (1)(b) of concentrations of credit and funding costs, and to reduce reliance on non-core fundingthis Article;
(e) identification the development of a management employment and succession program to identify future senior executive management staffing requirements for the Bank personnel and to be responsible and accountable for achieving each goal and objective promote the continuity of the Strategic Plan, including specific time framescapable management;
(f) review of current staffing needs and distribution of loan servicing work among personnel;
(g) an identification and prioritization of initiatives and opportunities, including timeframes that take into account the requirements of this Agreement; and
(h) a financial forecastrealistic and comprehensive budget, to include quarterly projections for major balance sheet and income statement accounts, targeted accounts and desired financial ratios, and growth projections ratios over the period covered by the Strategic Plan;
(g) a description of the assumptions used , that corresponds to determine financial projections and growth targets;
(h) an identification and risk assessment of the Bank's present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in the Strategic Plan, with the requirement that the risk assessment of new product lines must be completed prior to the offering of such product lines;
(i) a description of control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's operating environment;
(j) assigned responsibilities and accountability for the strategic planning process, new products, growth goals, and proposed changes in the Bank's operating environment; and
(k) a description of systems to monitor the Bank's progress in meeting the Strategic Plan's ’s goals and objectives.
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare a written evaluation of the Bank's ’s performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include that includes a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days Upon completion of completing each of its evaluationevaluations, the Board shall submit a copy to the Assistant Deputy Comptroller.
(63) Prior to adoption by the Board, a copy of The Board shall review and update the Strategic PlanPlan at least annually, no later than January 31 each year, and any subsequent amendments more frequently if necessary or revisions, shall be forwarded to if required by the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from in writing, to cover the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Plannext three-year period.
(7) The Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advance, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Plan.
(8) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Banking Agreement
STRATEGIC PLAN. (1) Within ninety one hundred and twenty (90120) daysdays of the date of this Agreement, the Board Bank shall forward submit to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) review and prior written determination of this Article, a no supervisory objection an acceptable written Strategic Plan strategic plan for the Bank that is acceptable to the Assistant Deputy ComptrollerBank, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank period (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the “Strategic Plan”). The Strategic Plan shall establish objectives for the Bank's ’s overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital and liquidity adequacy, reduction in the volume of nonperforming assets, and product line development, and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shall, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description of the Bank's targeted market(s) and an assessment of the current and projected risks and competitive factors in its identified target market(s);
(c) the strategic goals and objectives to be accomplished and actions to be taken to achieve identified goals and objectivesaccomplished, including specific time frameskey financial indicators, risk tolerances, and realistic strategies to improve the overall condition of the Bank;
(c) a risk profile that evaluates credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation risks in relationship to capital;
(d) specific actions to improve Bank earnings an assessment of the Bank’s strengths, weaknesses, opportunities and asset quality, to reduce the level of concentrations of credit threats that impact its strategic goals and funding costs, and to reduce reliance on non-core fundingobjectives;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective an evaluation of the Strategic PlanBank’s internal operations, including specific time framesstaffing requirements, board and management information systems, policies, and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under paragraph (1)(b) of this Article;
(f) a management employment and succession plan designed to promote adequate staffing and continuity of capable management;
(g) a realistic and comprehensive budget that corresponds to the Strategic Plan’s goals and objectives;
(h) an action plan to improve and sustain the Bank’s earnings and accomplish identified strategic goals and objectives;
(i) a financial forecast, forecast to include projections for major significant balance sheet and income statement accounts, targeted accounts and desired financial ratios, and growth projections ratios over the period covered by the Strategic Plan;
(gj) specific plans for the maintenance of adequate capital, consistent with the Capital Plan required under Article V;
(k) a detailed description and assessment of major capital expenditures required to achieve the goals and objectives of the Strategic Plan;
(l) an identification and prioritization of initiatives and opportunities, including timeframes that comply with the requirements of this Agreement;
(m) a description of the assumptions used Bank’s target market(s), competitive factors in its identified target market(s), and controls systems to determine financial projections and growth targetsmitigate risks in the Bank’s target market(s);
(hn) an identification and risk assessment of the Bank's present and planned future product lines (assets and liabilities) that will be utilized and the identification of appropriate risk management systems to accomplish identify, measure, monitor, and control risks within the strategic goals and objectives established in the Strategic Plan, with the requirement that the risk assessment of new product lines must be completed prior to the offering of such product lines;
(io) a description of control systems to mitigate risks associated concentration limits commensurate with planned new products, growth, or any proposed changes in the Bank's operating environment’s strategic goals and objectives and risk profile;
(jp) assigned responsibilities roles, responsibilities, and accountability for the strategic planning process, new products, growth goals, and proposed changes in the Bank's operating environment; and
(kq) a description of systems and metrics designed to monitor the Bank's ’s progress in meeting the Strategic Plan's ’s goals and objectives.
(2) The Board shall also include as part If the Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger of the Bank’s , including a transaction pursuant to 12 U.S.C. § 215a-3, the Strategic Plan whether shall, at a minimum, address the steps that shall be taken and the associated timeline to sell, merge or liquidate effect the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution implementation of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditionsthat alternative.
(3) Should Within thirty (30) days following the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation Board’s receipt of the Bank, and Assistant Deputy Comptroller’s written determination of no supervisory objection to the means by which Strategic Plan or to any subsequent update or amendment to the Board shall value and market the Bank.
(4) At least monthlyStrategic Plan, the Board shall adopt and Bank management, subject to Board review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals ongoing monitoring, shall immediately implement and objectives established in thereafter ensure adherence to the Strategic Plan.
(5) At least quarterly, the . The Board shall prepare a written evaluation review the effectiveness of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performanceupdate the Strategic Plan at least annually, but no later than January 31 of each year, and more frequently if necessary or if required by the OCC in writing. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Assistant Deputy Comptroller.
(6) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments or revisions, shall Plan must be forwarded submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving .
(4) Until the Strategic Plan required under this Article has been submitted by the Bank for the Assistant Deputy Comptroller’s review, has received a written determination of no supervisory objection from the Assistant Deputy Comptroller, and has been adopted by the Board shall adopt and Board, the Bank shall not significantly deviate from the products, services, asset composition and size, funding sources, structure, operations, policies, procedures, and markets of the Bank that existed immediately implement and adhere before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to the Strategic Plansuch significant deviation.
(75) The Bank may not initiate any action that significantly deviates significantly from a Strategic Plan (that has received written determination of no supervisory objection from the Board- approved Strategic Plan Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give .
(6) Any request by the Bank for prior written determination of no supervisory objection to a significant deviation described in paragraphs (4) or (5) of this Article shall be submitted in writing to the Assistant Deputy Comptroller advance, at least thirty (30) days in advance of the proposed significant deviation. Such written notice of its intent to deviate significantly from request by the Strategic Plan, along with Bank shall include an assessment of the impact effects of such proposed change on the Bank's condition’s condition and risk profile, including a profitability analysis and an evaluation of the adequacy of the Bank's ’s organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Planproposed change.
(8) 7) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's ’s markets, marketing strategies, products and services, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, asset composition and size, or funding strategy, any of which, alone or in the aggregate, may have a material impact effect on the Bank's ’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact effect on the Bank's ’s operations or financial performance. For purposes .
(8) Within thirty (30) days after the end of this paragrapheach quarter, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member a written evaluation of the Bank's ’s performance against the Strategic Plan shall be prepared by Bank management and submitted to the Board. Within fifteen (15) days after submission of the evaluation, the Board shall review the evaluation and determine the corrective actions the Board will require Bank management to take to address any identified shortcomings. The Board’s review of Directorsthe evaluation and discussion of any required corrective actions to address any identified shortcomings shall be documented in the Board’s meeting minutes. Upon completion of the Board’s review, or any other position subsequently identified in writing by the Board shall submit to the Assistant Deputy ComptrollerComptroller a copy of the evaluation as well as a detailed description of the corrective actions the Board will require the Bank to take to address any identified shortcomings.
Appears in 1 contract
Sources: Compliance Agreement
STRATEGIC PLAN. (1) Within ninety one hundred twenty (90120) daysdays of the date of this Agreement, the Board shall develop, approve, and forward to the Assistant Deputy Comptroller for his reviewComptroller, pursuant to paragraph paragraph
(64) of this Article, a its written Strategic Plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-three (3) year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan shall establish include objectives for the Bank's ’s overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital and liquidity adequacy, reduction in sound risk management practices, and adequate staffing, together with strategies to achieve those objectives and, at a minimum, include:
(a) mission and risk appetite statements that form the volume framework for the establishment of nonperforming assetsstrategic goals, objectives, and risk tolerances;
(b) an assessment of the Bank’s present and future operating environment;
(c) an assessment of strengths, weaknesses, opportunities, and threats that impact strategic goals and objectives;
(d) the strategic goals and objectives to be accomplished over the short- and long-term, including key financial indicators and risk tolerances;
(e) an evaluation of the Bank’s internal operations, staffing requirements, Board and management information systems and policies and procedures for their adequacy and contribution to the accomplishment of the goals and objectives developed under (1)(d) of this Article;
(f) an identification and prioritization of initiatives and opportunities, including timeframes that take into account the requirements of this Agreement;
(g) product line development, development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shall, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(bh) a description the identification of appropriate risk management systems to identify, measure, monitor, and control risks (including, but not limited to compliance, operations, information technology and personnel), that are consistent with safe and sound banking practices within the Bank's targeted market(s) ’s present and an assessment of the current planned products and projected risks and competitive factors in its identified target market(s)services;
(ci) the an action plan to improve and sustain bank earnings and accomplish identified strategic goals and objectives to be accomplished and actions to be taken to achieve identified goals and objectives, including individual responsibilities, accountability and specific time frames;
(d) specific actions to improve Bank earnings and asset quality, to reduce the level of concentrations of credit and funding costs, and to reduce reliance on non-core funding;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time frames;
(fj) a financial forecastrealistic and comprehensive budget, to include quarterly projections for major balance sheet and income statement accounts, targeted accounts and desired financial ratios, and growth projections ratios over the period covered by the Strategic Plan, that corresponds to the Strategic Plan’s goals and objectives;
(gk) a description provisions for injections of the assumptions used to determine financial projections and growth targetsequity capital, as necessary;
(hl) an identification documented assumptions surrounding financial projections, including asset growth, funding needs, capital requirements, operating and risk assessment of the Bank's present provision expenses, and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in the Strategic Plan, with the requirement that the risk assessment of new product lines must be completed prior to the offering of such product linesnon-interest income;
(im) a description of control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's operating environmentdocumented loan and deposit pricing guidelines;
(jn) assigned responsibilities and accountability for the strategic planning process, new products, growth goals, and or proposed changes in the Bank's ’s operating environment;
(o) a description of the systems and metrics to monitor the Bank’s progress in meeting the plan’s goals and objectives; and
(kp) a description of the processes in place to ensure the Bank has sufficient and adequate processes, personnel and control systems to monitor the Bank's progress in meeting effectively implement and adhere to the Strategic Plan's goals , adequately support the Bank’s risk profile, maintain compliance with applicable regulatory capital requirements, comply with this Agreement, and objectives.maintain appropriate levels of liquidity;
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare a written evaluation of the Bank's ’s performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten thirty (1030) days of completing its written evaluation, the Board shall submit a copy of the evaluation to the Assistant Deputy Comptroller.
(63) The Board shall review and revise the Strategic Plan at least annually, by no later than December 31st each year, and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing, to cover at least the next three year period.
(4) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments amendments, revisions, or revisionsupdates, shall be forwarded submitted to the Assistant Deputy Comptroller for review and a prior written determination of no supervisory objection. Upon receiving At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the initial or revised Strategic Plan, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall immediately implement and thereafter ensure adherence to the Strategic Plan and any amendments, revisions, or updates thereto.
(5) Until the Strategic Plan required under this Article has been submitted by the Bank for OCC review, has received a written determination of no supervisory objection from the Assistant Deputy ComptrollerOCC, and has been adopted by the Board shall adopt and Board, the Bank shall immediately implement and adhere to the Strategic Plan.
(7) The Bank may not initiate any action that deviates significantly deviate from the Board- approved products, services, asset composition and size, funding sources, structure, operations, policies, procedures, and markets of the Bank that existed before the later of (i) execution of this Agreement or (ii) the most recent Strategic Plan without required under this Article that has been submitted by the Bank for OCC review, has received a written determination of no supervisory objection from the Assistant Deputy ComptrollerOCC, and has been adopted by the Board without first obtaining the OCC’s prior written determination of no supervisory objection to such significant deviation. The Board Any request to the OCC for prior written determination of no supervisory objection to a significant deviation must give be submitted in writing to the Assistant Deputy Comptroller advance, written notice thirty (30) days in advance of its intent to deviate significantly from the Strategic Plan, along with significant deviation and shall include:
(a) an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's ’s management, staffing levels, organizational structure, staffingfinancial condition, capital adequacy, funding sources, management information systems, internal controls, and written policies and procedures with respect to the proposed significant deviation; and
(b) the Bank’s evaluation of its capability to identify, measure, monitor, and control the risks associated with the change in the Strategic Planproposed significant deviation.
(8) For 6) The Board shall ensure that the purposes Bank has processes, personnel, and control systems to ensure implementation of and adherence to the plan developed pursuant to this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Banking Agreement
STRATEGIC PLAN. (1) Within ninety one hundred and twenty (90120) days, the Board shall forward to the Assistant Deputy Comptroller for his reviewadopt, pursuant to paragraph (6) of this Articleimplement, and thereafter ensure Bank adherence to, a written Strategic Plan strategic plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan strategic plan shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shall, at . At a minimum, the plan must include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description an assessment of the Bank's targeted market(s) present and an assessment of the current and projected risks and competitive factors in its identified target market(s)future operating environment;
(c) the development of strategic goals and objectives to be accomplished over the short and actions to be taken to achieve identified goals and objectives, including specific time frameslong term;
(d) specific actions to improve Bank earnings and asset quality, to reduce the level of concentrations of credit and funding costs, and to reduce reliance on non-core funding;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time frames;
(f) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan;
(g) a description of the assumptions used to determine financial projections and growth targets;
(h) an identification and risk assessment of the Bank's ’s present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (1 )(c) of this Article;
(e) an evaluation of the Strategic PlanBank's internal operations, with staffing requirements, board and management information systems, and policies and procedures for their adequacy and contribution to the requirement accomplishment of the goals and objectives developed under (1)(c) of this Article;
(f) a management employment and succession program to promote the retention and continuity of capable management;
(g) product line development and market segments that the risk assessment of new product lines must be completed prior Bank intends to the offering of such product linespromote or develop;
(h) an action plan to improve bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability, and specific time frames;
(i) a description of financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the strategic plan;
(j) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's ’s operating environment;
(jk) assigned specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, and or proposed changes in the Bank's ’s operating environment; and
(kl) a description of systems to monitor the Bank's ’s progress in meeting the Strategic Plan's plan’s goals and objectives.
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy to the Assistant Deputy Comptroller.
(6) Prior to adoption by the BoardUpon adoption, a copy of the Strategic Plan, and any subsequent amendments or revisions, plan shall be forwarded to the Assistant Deputy Comptroller ADC for review and prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Plan.
(7) The Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advance, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Plan.
(8) For the purposes of this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Banking Agreement
STRATEGIC PLAN. (1) Within ninety one hundred fifty (90150) days, the Board shall forward adopt, implement, and thereafter ensure Bank adherence to the Assistant Deputy Comptroller for his review, pursuant to paragraph (6) of this Article, a written Strategic Plan strategic plan for the Bank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to the Strategic Plan. The Strategic Plan strategic plan shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives, and shallobjectives and, at a minimum, include:
(a) a mission statement that forms the framework for the establishment of strategic goals and objectives;
(b) a description an assessment of the Bank's targeted market(s) present and an assessment of the current and projected risks and competitive factors in its identified target market(s)future operating environment;
(c) the development of strategic goals and objectives to be accomplished over the short and actions to be taken to achieve identified goals and objectives, including specific time frameslong term;
(d) specific actions to improve Bank earnings and asset quality, to reduce the level of concentrations of credit and funding costs, and to reduce reliance on non-core funding;
(e) identification of Bank personnel to be responsible and accountable for achieving each goal and objective of the Strategic Plan, including specific time frames;
(f) a financial forecast, to include projections for major balance sheet and income statement accounts, targeted financial ratios, and growth projections over the period covered by the Strategic Plan;
(g) a description of the assumptions used to determine financial projections and growth targets;
(h) an identification and risk assessment of the Bank's ’s present and planned future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (1 )(c) of this Article;
(e) an evaluation of the Strategic PlanBank's internal operations, with staffing requirements, board and management information systems and policies and procedures for their adequacy and contribution to the requirement accomplishment of the goals and objectives developed under (1)(c) of this Article;
(f) a management employment and succession program to promote the retention and continuity of capable management;
(g) product line development and market segments that the risk assessment of new product lines must be completed prior Bank intends to the offering of such product linespromote or develop;
(h) an action plan to improve bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames;
(i) a description of financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the strategic plan;
(j) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank's ’s operating environment;
(jk) assigned specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, and or proposed changes in the Bank's ’s operating environment; and
(kl) a description of systems to monitor the Bank's ’s progress in meeting the Strategic Plan's plan’s goals and objectives.
(2) The Board shall also include as part of the Bank’s Strategic Plan whether to sell, merge or liquidate the Bank or remain an independent national bank. The Board must consider and document in this written analysis various scenarios, including, but not limited to:
(a) resolution of problem assets (including related costs);
(b) viable sources of liquidity (including related costs);
(c) achievement and maintenance of capital requirements as defined in Article IV – Capital Plan and Higher Minimums detailed below; and
(d) ongoing viability of the bank based on current financial and market conditions.
(3) Should the Board decide to sell, merge or liquidate the Bank, the written analysis required under Paragraph (2) of this Article must also include timeframes and procedures for achieving the sale, merger or liquidation of the Bank, and the means by which the Board shall value and market the Bank.
(4) At least monthly, the Board shall review financial reports and earnings analyses prepared by the Bank that evaluates the Bank's performance against the goals and objectives established in the Strategic Plan.
(5) At least quarterly, the Board shall prepare a written evaluation of the Bank's performance against the established Strategic Plan, including the Board’s analysis of the Bank’s financial performance and variance reports. The evaluation should also include an explanation of any differences between the established Strategic Plan and actual performance. The written evaluation should also explain significant differences between actual and projected balance sheets, income statements, and expense accounts, including descriptions of extraordinary and/or nonrecurring items. Finally the evaluation shall include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Within ten (10) days of completing its evaluation, the Board shall submit a copy to the Assistant Deputy Comptroller.
(6) Prior to adoption by the BoardUpon adoption, a copy of the Strategic Plan, and any subsequent amendments or revisions, plan shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall adopt and the Bank shall immediately implement and adhere to the Strategic Planstrategic plan.
(73) The Board shall ensure that the Bank may not initiate any action that deviates significantly from the Board- approved Strategic Plan without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller advancehas processes, written notice of its intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank's condition, including a profitability analysis and an evaluation of the adequacy of the Bank's organizational structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitorpersonnel, and control systems to ensure implementation of and adherence to the risks associated with the change in the Strategic Plan.
(8) For the purposes of plan developed pursuant to this Article, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's marketing strategies, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank's operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance. For purposes of this paragraph, “personnel” shall include the president, chief executive officer, chief operating officer, chief financial officer, chief credit officer, chief compliance officer, risk manager, auditor, member of the Bank's Board of Directors, or any other position subsequently identified in writing by the Assistant Deputy Comptroller.
Appears in 1 contract
Sources: Banking Agreement