STRATEGIC PLAN. (1) Within ninety (90) days of the date of this Agreement, the Board shall submit to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection an acceptable written strategic plan for the Bank, covering at least a three-year period (“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 and liquidity adequacy, 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) the strategic goals and objectives to be accomplished, including key 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) an assessment of the Bank’s strengths, weaknesses, opportunities and threats that impact its strategic goals and objectives; (e) an evaluation of the Bank’s internal operations, staffing 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 to include projections for significant balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plan; (j) Specific plans for the maintenance of adequate capital, consistent with the Capital Plan required by 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 Bank’s target market(s), competitive factors in its identified target market(s), and controls systems to mitigate risks in the Bank’s target market(s); (n) an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lines; (o) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile; (p) assigned roles, responsibilities, and accountability for the strategic planning process; and (q) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives. (2) If the Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger of the Bank, the Strategic Plan shall, at a minimum, address the steps that shall be taken and the associated timeline to effect the implementation of that alternative. (3) Within thirty (30) days following the Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the Strategic Plan or to any subsequent update or amendment to the Strategic Plan, 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. The Board shall review the effectiveness of the Strategic Plan and update 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 Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. (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, 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 before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation. (5) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller. (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 at least thirty (30) days in advance of the proposed significant deviation. Such written request by the Bank shall include an assessment of the effects of such proposed change on the Bank’s condition and risk profile, 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 proposed change. (7) For the purposes of this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s operations or financial performance. (8) Within thirty (30) days after the end of each quarter, a written evaluation of the Bank’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 the 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, the Board shall submit to the Assistant Deputy Comptroller 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
Samples: Compliance Agreement
STRATEGIC PLAN. (1) Within sixty (60) days, the Board must decide whether to sell the Bank or remain an independent national bank. If the Bank is to remain an independent, within ninety (90) days of the date of this Agreement, the Board shall submit adopt, implement, and thereafter ensure Bank adherence to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection an acceptable a written strategic plan for the Bank, Bank covering at least a three-year period (“Strategic Plan”)period, which corresponds to the developed Capital Plan in Article III above. 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 and liquidity adequacy, and 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) an assessment of the Bank's present and future operating environment;
(c) the development of strategic goals and objectives to be accomplished, including key financial indicators, risk tolerances, accomplished over the short 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 capitallong term;
(d) an assessment identification of the Bank’s strengths, weaknesses, opportunities present and threats future product lines (assets and liabilities) that impact its will be utilized to accomplish the strategic goals and objectivesobjectives established in (1 )(c) of this Article;
(e) an evaluation of the Bank’s 's internal operations, staffing requirements, board and management information systems, policies, systems and policies and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under paragraph (1)(b1)(c) of this Article;
(f) a management employment and succession plan designed program to promote adequate staffing the retention and continuity of capable management. This succession plan should also include:
(i) the attraction of new Board members;
(gii) a realistic product line development and comprehensive budget market segments that corresponds the Bank intends to the Strategic Plan’s goals and objectivespromote or develop;
(hiii) an action plan to improve and sustain the Bank’s bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames;
(iiv) a financial forecast to include projections for significant major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Planstrategic plan;
(jv) Specific plans for the maintenance of adequate capital, consistent with the Capital Plan required by 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 Bank’s target market(s), competitive factors in its identified target market(s), and controls control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s target market(s)operating environment;
(nvi) an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems specific plans to identify, measure, monitor, and control risks within the product lines;
(o) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile;
(p) assigned roles, responsibilities, establish responsibilities and accountability for the strategic planning process; and, new products, growth goals, or proposed changes in the Bank’s operating environment;
(qvii) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Planplan’s goals and objectives; and
(viii) contingency plans that identify alternative methods should established strategic objectives not be achieved as described in (a) through (f) above. The contingency plans must also include an option to sell, merge or liquidate the bank with corresponding triggers, timeframes and a detailed process.
(2) If the Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger Prior to adoption of the Bankstrategic plan by the Board, the Strategic Plan shall, at a minimum, address the steps that copy shall be taken and the associated timeline to effect the implementation of that alternative.
(3) Within thirty (30) days following the Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the Strategic Plan or to any subsequent update or amendment to the Strategic Plan, 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. The Board shall review the effectiveness of the Strategic Plan and update 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 Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory non-objection. Such determination will be made within thirty (30) days of receipt of the strategic plan. Immediately upon receiving a determination of supervisory non-objection, the strategic plan shall be implemented.
(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, 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 before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation.
(53) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller.
(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 must give the Assistant Deputy Comptroller at least thirty sixty (3060) days advance, written notice of its intent to deviate significantly from the strategic plan.
(4) For purposes of this Article, changes that may constitute a significant deviation from the strategic plan include, but are not limited to, any significant deviations from marketing strategies, marketing partners, acquisition channels; underwriting practices and standards, account management strategies and test programs; collection strategies, partners or operations; fee structure, pricing, or fee application methods; accounting processes and practices; funding strategy; or any other changes in advance of the proposed significant deviation. Such written request by the Bank shall include an assessment of the effects of such proposed change personnel, operations or external factors that may have a material impact on the Bank’s condition and risk profile's operations or financial performance.
(5) Prior to making any changes that significantly deviate from the Bank's strategic plan, including a profitability analysis and the Board shall perform an evaluation of the adequacy of the Bank’s 's organizational structure, staffing, management information systems, internal controls, controls and written policies and procedures to identify, measure, monitor, and control the risks associated with the proposed changeproduct or service. The evaluation shall include an assessment of the impact of such change on the Bank's condition, including a profitability analysis. For the purpose of this Agreement, a significant deviation shall have the same meaning as that phrase is further described in Appendix G (Significant Deviations After Opening) of the “Charters” booklet of the Comptroller’s Licensing Manual (January 2005).
(6) If the OCC determines, in its sole judgment, that the Bank has failed to submit an acceptable strategic plan as required by paragraph (1) of this Article or has failed to implement or adhere to the Bank’s specific, measurable, and verifiable objectives included in the strategic plan, for which the OCC has taken no supervisory objection pursuant to paragraph (2) of this Article, then within fifteen (15) days of receiving written notice from the OCC of such fact, the Board shall develop and shall submit to the OCC for its review and prior determination of no supervisory objection a revised strategic plan, which shall detail the Bank’s proposal to correct deficiencies resulting in the Bank’s failure and to adhere to the Bank’s original strategic plan.
(7) For After the purposes of this ArticleOCC has advised the Bank that it does not take supervisory objection to the revised strategic plan, changes that may constitute a significant deviation includethe Board shall immediately implement, but are not limited and shall thereafter ensure adherence to, a change in the Bank’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 terms of which, alone or in the aggregate, may have a material effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s operations or financial performancerevised strategic plan.
(8) Within thirty (30) days after Failure to submit a timely, acceptable revised strategic plan may be deemed a violation of this Agreement, in the end of each quarter, a written evaluation exercise of the BankOCC’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 the 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, the Board shall submit to the Assistant Deputy Comptroller 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 shortcomingssole discretion.
Appears in 1 contract
Samples: Banking Agreement
STRATEGIC PLAN. (1) Within ninety sixty (9060) days of the date of this Agreementdays, the Board shall submit to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection an acceptable revise a written strategic plan for the Bank, Bank covering at least a three-year period (“Strategic Plan”)period. 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 and liquidity adequacy, and 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) an assessment of the Bank's present and future operating environment;
(c) the development of strategic goals and objectives to be accomplished, including key financial indicators, risk tolerances, accomplished over the short 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 capitallong term;
(d) an assessment identification of the Bank’s strengths, weaknesses, opportunities present and threats future product lines (assets and liabilities) that impact its will be utilized to accomplish the strategic goals and objectivesobjectives established in (1)(c) of this Article;
(e) an evaluation of the Bank’s 's internal operations, staffing requirements, board and management information systems, policies, systems and policies and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under paragraph (1)(b1)(c) of this Article;
(f) a management employment and succession plan designed program to promote adequate staffing the retention and continuity of capable management;
(g) a realistic product line development and comprehensive budget market segments that corresponds the Bank intends to the Strategic Plan’s goals and objectivespromote or develop;
(h) an action plan to improve and sustain the Bank’s earnings and accomplish identified strategic goals and objectives;
(i) a financial forecast to include projections for significant major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Planstrategic plan;
(i) an evaluation of funding sources the Bank intends to utilize, which sources must be adequate to ensure the maintenance of liquidity at a level that is sufficient to sustain the Bank's current operations and to withstand any anticipated or extraordinary demand against its funding base; i If the Bank seeks to accept, renew, or roll over Brokered Deposits (as defined by 12 C.F.R. § 337.6(a)(2)), the Board shall apply to the Assistant Deputy Comptroller for written permission. Such application shall contain, at a minimum, the following:
a. the dollar volume, maturities, and cost of the Brokered Deposits to be acquired;
b. the proposed use of the Brokered Deposits, i.e., short-term liquidity or restructuring of liabilities to reduce cost;
c. alternative funding sources available to the Bank; and
d. the reasons why the Bank believes that the acceptance of the Brokered Deposits does not constitute an unsafe and unsound practice in its particular circumstances.
ii. The Assistant Deputy Comptroller may require the submission of such additional information as necessary to make an informed decision on the Brokered Deposit application. Upon consideration of the Bank's application, the Assistant Deputy Comptroller will determine whether the proposed acquisition, renewal, or roll over of Brokered Deposits may be accomplished in a safe and sound manner and may condition or prohibit the Bank's acquisition as the Assistant Deputy Comptroller shall deem appropriate in his sole discretion.
(j) Specific plans for control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the maintenance of adequate capital, consistent with the Capital Plan required by Article VBank’s operating environment;
(k) a detailed description and assessment of major capital expenditures required specific plans 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 Bank’s target market(s), competitive factors in its identified target market(s), and controls systems to mitigate risks in the Bank’s target market(s);
(n) an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lines;
(o) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile;
(p) assigned roles, responsibilities, establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and
(ql) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Planplan’s goals and objectives.
(2) If the Strategic Plan under paragraph (1) of this Article includes Upon adoption, a proposed sale or merger copy of the Bank, the Strategic Plan shall, at a minimum, address the steps that plan shall be taken and the associated timeline to effect the implementation of that alternative.
(3) Within thirty (30) days following the Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the Strategic Plan or to any subsequent update or amendment to the Strategic Plan, 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. The Board shall review the effectiveness of the Strategic Plan and update 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 Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection.
(4) Until the Strategic Plan required under this Article has been submitted by the Bank for the Assistant Deputy Comptroller’s review, has received . Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, and has been adopted by the Board, the Bank shall not significantly deviate from implement and adhere to the products, services, asset composition and size, funding sources, structure, operations, policies, procedures, and markets of the Bank that existed immediately before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviationstrategic plan.
(53) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller.
(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 must give the Assistant Deputy Comptroller at least thirty sixty (3060) days advance, written notice of its intent to deviate significantly from the strategic plan.
(a) For purposes of this Article, changes that may constitute a significant deviation from the strategic plan include, but are not limited to, any significant deviations from marketing strategies, marketing partners, acquisition channels; underwriting practices and standards, account management strategies and test programs; collection strategies, partners or operations; fee structure, pricing, or fee application methods; accounting processes and practices; funding strategy; or any other changes in advance of the proposed significant deviation. Such written request by the Bank shall include an assessment of the effects of such proposed change personnel, operations or external factors that may have a material impact on the Bank’s condition and risk profile's operations or financial performance.
(b) Prior to making any changes that significantly deviate from the Bank's strategic plan, including a profitability analysis and the Board shall perform an evaluation of the adequacy of the Bank’s 's organizational structure, staffing, management information systems, internal controls, controls and written policies and procedures to identify, measure, monitor, and control the risks associated with the proposed changeproduct or service. The evaluation shall include an assessment of the impact of such changes on the Bank's condition, including a profitability analysis.
(74) For The Board shall ensure that the purposes Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s operations or financial performance.
(8) Within thirty (30) days after the end of each quarter, a written evaluation of the Bank’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 the 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, the Board shall submit to the Assistant Deputy Comptroller 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
Samples: Banking Agreement
STRATEGIC PLAN. (1) Within ninety (90) days of the date of this Agreement, the Board shall submit prepare and forward to the Assistant Deputy Comptroller for review and prior Director, pursuant to paragraph (3) of this Article, a revised written determination of no supervisory objection an acceptable written strategic plan Strategic Plan (Strategic Plan) for the Bank, covering at least a three-year period (“Strategic Plan”)period. 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 and liquidity adequacy, and 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) the strategic goals and objectives to be accomplished, including key financial indicators, indicators and 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) an assessment of the Bank’s strengths, weaknesses, opportunities and threats that impact its strategic goals and objectives;
(d) a risk profile that evaluates credit, interest rate, liquidity, price, operational, compliance, strategic and reputation risks in relationship to capital, earnings, and the Bank's current and projected financial condition and ability to withstand periods of stress;
(e) an evaluation of the Bank’s 's internal operations, staffing 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 to include projections for significant major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plan;
(j) Specific plans for the maintenance of adequate capital, consistent with the Capital Plan required by Article V;
(k) a detailed description and assessment of major capital expenditures required to achieve the goals and objectives of the Strategic Plan;
(lk) an identification and prioritization of initiatives and opportunities, including timeframes that comply with the requirements of this Agreement;
(ml) a description of the Bank’s target market(s), ) and competitive factors in its identified target market(s), and a description of controls systems to mitigate risks in the Bank’s target market(s);
(nm) an identification and assessment of the present and planned product lines (assets and liabilities) services on or off-balance sheet and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lineslines and services;
(on) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile;
(po) assigned roles, responsibilities, and accountability for the strategic planning process; and
(qp) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives.
(2) If the Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger of the Bank, the Strategic Plan shall, at a minimum, address the steps that shall be taken and the associated timeline to effect the implementation of that alternative.
(3) Within thirty (30) days following Prior to adoption by the Board’s , a copy of the Strategic Plan, and any subsequent amendments, revisions, or updates, shall be submitted to the Director for review and prior written determination of no supervisory objection. At the next Board meeting following receipt of the Assistant Deputy ComptrollerDirector’s written determination of no supervisory objection to the Strategic Plan or to any subsequent update or amendment to the Strategic Planobjection, 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. The Board shall review the effectiveness of the Strategic Plan and update the Strategic Plan at least annually, but no later than January 31 of each year, and more frequently if necessary any amendments or if required by the OCC in writing. The Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objectionrevisions thereto.
(4) Until the Strategic Plan required under this Article has been submitted by the Bank for the Assistant Deputy ComptrollerDirector’s review, has received a written determination of no supervisory objection from the Assistant Deputy Comptroller, Director and has been adopted by the 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 before the effective date of this Agreement without first obtaining the Assistant Deputy ComptrollerDirector’s prior written determination of no supervisory objection to such significant deviation.
(5) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller Director and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy ComptrollerDirector.
(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 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 effects of such proposed change on the Bank’s condition and risk profile, 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 proposed change.
(7) For the purposes of this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect impact on the Bank’s operations or financial performance.
(8) Within thirty 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. This review shall include a description of the actions the Board will require the Bank to take to address any deficiencies.
(309) days after the end of each quarterAt least quarterly, a written evaluation of the Bank’s performance against the Strategic Plan shall be prepared by Bank management and submitted to the Board. Within fifteen ten
(1510) 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 the 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, the The Board shall submit to the Assistant Deputy Comptroller a copy of the written evaluation to the Director within ten (10) days of completion of its quarterly written review, 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
Samples: Compliance Agreement
STRATEGIC PLAN. (1) Within ninety one hundred and twenty (90120) days of the date of this Agreement, the Board Bank shall submit to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection an acceptable written strategic plan for the Bank, covering at least a three-year period (“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 and liquidity adequacy, 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) the strategic goals and objectives to be accomplished, including key 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) an assessment of the Bank’s strengths, weaknesses, opportunities and threats that impact its strategic goals and objectives;
(e) an evaluation of the Bank’s internal operations, staffing 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 to include projections for significant balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plan;
(j) Specific specific plans for the maintenance of adequate capital, consistent with the Capital Plan required by 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 Bank’s target market(s), competitive factors in its identified target market(s), and controls systems to mitigate risks in the Bank’s target market(s);
(n) an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lines;
(o) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile;
(p) assigned roles, responsibilities, and accountability for the strategic planning process; and
(q) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives.
(2) If the Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger of the Bank, including a transaction pursuant to 12 U.S.C. § 215a-3, the Strategic Plan shall, at a minimum, address the steps that shall be taken and the associated timeline to effect the implementation of that alternative.
(3) Within thirty (30) days following the Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the Strategic Plan or to any subsequent update or amendment to the Strategic Plan, 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. The Board shall review the effectiveness of the Strategic Plan and update 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 Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection.
(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, 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 before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation.
(5) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller.
(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 at least thirty (30) days in advance of the proposed significant deviation. Such written request by the Bank shall include an assessment of the effects of such proposed change on the Bank’s condition and risk profile, 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 proposed change.
(7) For the purposes of this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s operations or financial performance.
(8) Within thirty (30) days after the end of each quarter, a written evaluation of the Bank’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 the 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, the Board shall submit to the Assistant Deputy Comptroller 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
Samples: Compliance Agreement
STRATEGIC PLAN. (1) Within ninety (90) days of the date of this Agreementdays, the Board shall submit forward to the Assistant Deputy Comptroller for review and prior a written determination of no supervisory objection an acceptable written strategic plan Strategic Plan for the BankBank that is acceptable to the Assistant Deputy Comptroller, covering at least a three-year period (“Strategic Plan”)period. The Strategic Plan shall establish objectives and projections for the Bank’s overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital and liquidity adequacy, and 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) the development of strategic goals and objectives to be accomplishedaccomplished over the short and long term, including key 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) an assessment of the Bank’s strengths, weaknesses, opportunities opportunities, and threats that impact its strategic goals and objectives;
(ed) an evaluation of the Bank’s internal operations, staffing requirements, board Board and management information systems, policies, systems and 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;
(fe) the development of a management employment and succession plan designed program to identify future senior executive management staffing requirements for the Bank and to promote adequate staffing and the continuity of capable 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 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 budget, to include quarterly projections for significant major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plan;
(j) Specific plans for the maintenance of adequate capital, consistent with the Capital Plan required by Article V;
(k) a detailed description and assessment of major capital expenditures required that corresponds 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 Bank’s target market(s), competitive factors in its identified target market(s), and controls systems to mitigate risks in the Bank’s target market(s);
(n) an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lines;
(o) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile;
(p) assigned roles, responsibilities, and accountability for the strategic planning process; and
(q) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives.
(2) If At least quarterly, the Board shall prepare a written evaluation of the Bank’s performance against the Strategic Plan under paragraph (1) of this Article that includes a proposed sale or merger description of the Bankactions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Upon completion of each of its evaluations, the Strategic Plan shall, at Board shall submit a minimum, address copy to the steps that shall be taken and the associated timeline to effect the implementation of that alternativeAssistant Deputy Comptroller.
(3) Within thirty (30) days following the Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the Strategic Plan or to any subsequent update or amendment to the Strategic Plan, 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. The Board shall review the effectiveness of the Strategic Plan and update 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 Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objectionin writing, to cover the next three-year period.
(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, 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 before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation.
(5) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller.
(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 at least thirty (30) days in advance of the proposed significant deviation. Such written request by the Bank shall include an assessment of the effects of such proposed change on the Bank’s condition and risk profile, 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 proposed change.
(7) For the purposes of this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s operations or financial performance.
(8) Within thirty (30) days after the end of each quarter, a written evaluation of the Bank’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 the 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, the Board shall submit to the Assistant Deputy Comptroller 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
Samples: Banking Agreement
STRATEGIC PLAN. (1) Within ninety one hundred twenty (90120) days of the date of this Agreement, the Board shall submit revise and forward to the Assistant Deputy Comptroller for review and prior written determination review, pursuant to paragraph three (3) of no supervisory objection an acceptable written strategic plan for this Article, the Bank, covering ’s written Strategic Plan. The Strategic Plan shall cover at least a three-year period (“Strategic Plan”)and shall include reasonable projections of major balance sheet and income statement components. The Strategic Plan shall establish objectives for the Bank’s 's overall risk profile, Board and management competencies, sound corporate governance practices, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital and liquidity adequacy, and product line developmentreduction in the volume of nonperforming assets, and market segments that the Bank intends to promote or developrisk management, BSA/AML program, CRA plan, 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) an assessment of the Bank's present and future operating environment;
(c) the development of strategic goals and objectives to be accomplished, including key financial indicators, risk tolerances, accomplished over the short 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 capitallong term;
(d) an assessment the development and maintenance of action plans to achieve the Bank’s strengths, weaknesses, opportunities and threats that impact its strategic goals and objectivesobjectives developed under subparagraph (1) (c) of this Article;
(e) an evaluation of the Bank’s 's internal operations, staffing requirements, board and management information systems, policies, and policies and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under paragraph subparagraph (1)(b1)(c) of this Article;
(f) an identification and assessment of the Bank’s present and planned product lines (assets and liabilities) and services and identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lines and services;
(g) a management employment and succession plan designed program to promote adequate staffing the retention and continuity of capable management;
(gh) a realistic and comprehensive budget that corresponds to the Strategic Plan’s goals and objectives;
(hi) an action plan to improve and sustain the Bank’s bank earnings to a profitable level and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames;
(ij) a financial forecast to include projections for significant major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plan;
(j) Specific plans for the maintenance of adequate capital, consistent with the Capital Plan required by Article Vstrategic plan;
(k) provisions for injections of equity capital, as necessary, including any commitments to the Bank for injections of equity capital;
(l) 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 Bank’s target market(s), competitive factors in its identified target market(s), and controls control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s target market(s)operating environment;
(n) an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate a sound risk management systems to identify, measure, monitor, and control risks within the product linesprogram;
(o) concentration limits commensurate with the Bank’s strategic goals and objectives and a sound interest rate risk profilemanagement program;
(p) a sound liquidity management program and contingency funding plan;
(q) assigned roles, responsibilities, responsibilities and accountability for the strategic planning process, including development, implementation, and adherence within the timeframes consistent with the requirements of this Article; and
(qr) a description of the systems and metrics designed to monitor the Bank’s progress in meeting and thereafter adhering to the Strategic Plan’s goals and objectives.
(2) If At least quarterly, the Board shall prepare a written evaluation of the Bank’s performance against the Strategic Plan under and 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. Upon completion of its written evaluation, the Board shall submit a copy to the Assistant Deputy Comptroller.
(3) Prior to adoption by the Board, the Strategic Plan shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The Board shall review and update the Bank's Strategic Plan, including after expiration of the three- year period referenced in paragraph one (1) of this Article includes a proposed sale Article, at least annually and more frequently if necessary or merger of if required by the Assistant Deputy Comptroller in writing. Revisions to and significant deviations from the Bank, the ’s Strategic Plan shall, at a minimum, address the steps that shall be taken and submitted to the associated timeline to effect Assistant Deputy Comptroller for a prior written determination of no supervisory objection. At the implementation of that alternative.
(3) Within thirty (30) days next Board meeting following the Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the initial or revised Strategic Plan or to any subsequent update or amendment to the significant deviations from the Strategic Plan, the Board shall adopt and the Bank management, (subject to Board review and ongoing monitoring, ) shall immediately implement and thereafter ensure adherence to the Strategic Plan. The Board shall review Plan and any amendments, revisions thereto or to the effectiveness of significant deviations from the Strategic Plan and update 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 Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objectionPlan.
(4) Until the Strategic Plan required under this Article has been submitted by the Bank for review by 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 and is being implemented by the 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 before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation.
(5) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from . Any request to the Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller.
(6) Any request by the Bank for prior written determination of no supervisory objection objections to a significant deviation described in paragraphs (4) or (5) of this Article shall must be submitted in writing to the Assistant Deputy Comptroller at least thirty (30) days in advance of the proposed significant deviation. Such written request by the Bank deviation and shall include include:
(a) an assessment of the effects of such proposed change on the Bank’s condition and risk profile, including a profitability analysis and an evaluation of the adequacy of the Bank’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 proposed changesignificant deviation.
(7) For the purposes of this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s operations or financial performance.
(8) Within thirty (30) days after the end of each quarter, a written evaluation of the Bank’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 the 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, the Board shall submit to the Assistant Deputy Comptroller 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
Samples: Banking Agreement
STRATEGIC PLAN. (1) Within ninety one hundred and twenty (90120) days of the date of this Agreementdays, the Board shall submit to the Assistant Deputy Comptroller for review adopt, implement, and prior written determination of no supervisory objection an acceptable thereafter ensure Bank adherence to, a written strategic plan for the Bank, Bank covering at least a three-year period (“Strategic Plan”)period. 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 and liquidity adequacy, and 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) an assessment of the Bank's present and future operating environment;
(c) the development of strategic goals and objectives to be accomplished, including key financial indicators, risk tolerances, accomplished over the short 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 capitallong term;
(d) an assessment identification of the Bank’s strengths, weaknesses, opportunities present and threats future product lines (assets and liabilities) that impact its will be utilized to accomplish the strategic goals and objectivesobjectives established in (1 )(c) of this Article;
(e) an evaluation of the Bank’s 's internal operations, staffing requirements, board and management information systems, policies, and policies and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under paragraph (1)(b1)(c) of this Article;
(f) a management employment and succession plan designed program to promote adequate staffing the retention and continuity of capable management;
(g) a realistic product line development and comprehensive budget market segments that corresponds the Bank intends to the Strategic Plan’s goals and objectivespromote or develop;
(h) an action plan to improve and sustain the Bank’s bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability, and specific time frames;
(i) a financial forecast to include projections for significant major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Planstrategic plan;
(j) Specific plans for control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the maintenance of adequate capital, consistent with the Capital Plan required by Article VBank’s operating environment;
(k) a detailed description and assessment of major capital expenditures required specific plans 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 Bank’s target market(s), competitive factors in its identified target market(s), and controls systems to mitigate risks in the Bank’s target market(s);
(n) an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lines;
(o) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile;
(p) assigned roles, responsibilities, establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and
(ql) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Planplan’s goals and objectives.
(2) If the Strategic Plan under paragraph (1) of this Article includes . Upon adoption, a proposed sale or merger copy of the Bank, the Strategic Plan shall, at a minimum, address the steps that plan shall be taken and the associated timeline to effect the implementation of that alternative.
(3) Within thirty (30) days following the Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection forwarded to the Strategic Plan or to any subsequent update or amendment to the Strategic Plan, 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. The Board shall review the effectiveness of the Strategic Plan and update 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 Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller ADC for review and prior written determination of no supervisory objection.
(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, 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 before the effective date of this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation.
(5) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy Comptroller.
(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 at least thirty (30) days in advance of the proposed significant deviation. Such written request by the Bank shall include an assessment of the effects of such proposed change on the Bank’s condition and risk profile, 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 proposed change.
(7) For the purposes of this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s operations or financial performance.
(8) Within thirty (30) days after the end of each quarter, a written evaluation of the Bank’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 the 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, the Board shall submit to the Assistant Deputy Comptroller 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
Samples: Banking Agreement
STRATEGIC PLAN. (1) Within ninety one-hundred and twenty (90120) days of the date of this Agreement, the Board shall submit prepare and forward to the Assistant Deputy Comptroller for review and prior Director, pursuant to paragraph (3) of this Article, a revised written determination of no supervisory objection an acceptable written strategic plan Strategic Plan for the Bank, covering at least a three-year period (“Strategic Plan”)period. 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 and liquidity adequacy, and 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) the strategic goals and objectives to be accomplished, including key financial indicators, indicators and 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) an assessment of the Bank’s strengths, weaknesses, opportunities and threats that impact its strategic goals and objectives;
(d) a risk profile that evaluates credit, interest rate, liquidity, price, operational, compliance, strategic and reputation risks in relationship to capital, earnings, and the Bank’s current and projected financial condition and ability to withstand periods of stress;
(e) an evaluation of the Bank’s internal operations, staffing 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 to include projections for significant major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plan;
(j) Specific plans for the maintenance of adequate capital, consistent with the Capital Plan required by Article V;
(k) a detailed description and assessment of major capital expenditures required to achieve the goals and objectives of the Strategic Plan;
(lk) an identification and prioritization of initiatives and opportunities, including timeframes that comply with the requirements of this Agreement;
(ml) a description of the Bank’s target market(s), ) and competitive factors in its identified target market(s), and a description of controls systems to mitigate risks in the Bank’s target market(s);
(nm) an identification and assessment of the present and planned product lines (assets and liabilities) services on or off-balance sheet and the identification of appropriate risk management systems to identify, measure, monitor, and control risks within the product lineslines and services;
(on) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile;
(po) assigned roles, responsibilities, and accountability for the strategic planning process; and
(qp) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives.
(2) If the Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger of the Bank, the Strategic Plan shall, at a minimum, address the steps that shall be taken and the associated timeline to effect the implementation of that alternative.
(3) Within thirty (30) days following Prior to adoption by the Board’s , a copy of the Strategic Plan, and any subsequent amendments, revisions, or updates, shall be submitted to the Director for review and prior written determination of no supervisory objection. At the next Board meeting following receipt of the Assistant Deputy ComptrollerDirector’s written determination of no supervisory objection to the Strategic Plan or to any subsequent update or amendment to the Strategic Planobjection, 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. The Board shall review the effectiveness of the Strategic Plan and update the Strategic Plan at least annually, but no later than January 31 of each year, and more frequently if necessary any amendments or if required by the OCC in writing. The Board shall amend the Strategic Plan as needed or directed by the OCC. Any update or amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objectionrevisions thereto.
(4) Until the Strategic Plan required under this Article has been submitted by the Bank for the Assistant Deputy ComptrollerDirector’s review, has received a written determination of no supervisory objection from the Assistant Deputy Comptroller, Director and has been adopted by the 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 before the effective date of this Agreement without first obtaining the Assistant Deputy ComptrollerDirector’s prior written determination of no supervisory objection to such significant deviation.
(5) The Bank may not initiate any action that significantly deviates from a Strategic Plan (that has received written determination of no supervisory objection from the Assistant Deputy Comptroller Director and has been adopted by the Board) without a prior written determination of no supervisory objection from the Assistant Deputy ComptrollerDirector.
(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 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 effects of such proposed change on the Bank’s condition and risk profile, 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 proposed change.
(7) For the purposes of this Article, changes that may constitute a significant deviation include, but are not limited to, a change in the Bank’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 effect on the Bank’s operations or financial performance; or any other changes in personnel, operations, or external factors that may have a material effect impact on the Bank’s operations or financial performance.
(8) Within thirty 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. This review shall include a description of the actions the Board will require the Bank to take to address any deficiencies.
(309) days after the end of each quarterAt least quarterly, a written evaluation of the Bank’s performance against the Strategic Plan shall be prepared by Bank management and submitted to the Board. Within fifteen ten
(1510) 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 the 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, the The Board shall submit to the Assistant Deputy Comptroller a copy of the written evaluation to the Director within ten (10) days of completion of its quarterly written review, as well as a detailed description of the corrective actions the Board will require the Bank to take to address any identified shortcomings.
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Samples: Formal Agreement
