Transparency & Accountability - Bank Examinations: Requests for Review of Material Supervisory Determinations
Requests for Review of Material Supervisory Determinations
Decisions Issued from January 1, 2018 to June 30, 2024
On July 18, 2017, the FDIC Board of Directors adopted revised Guidelines for Appeals of Material Supervisory Determinations, which included certain reporting requirements for requests for review of material supervisory determinations that are acted on by the applicable division director. The table below provides detailed information on the requests for review decisions issued between January 1, 2018, and June 30, 2024.
Division | Date | Determination(s) Contested | Decision |
---|---|---|---|
Division of Depositor and Consumer Protection | 6/20/2024 | Capital, Asset Quality, Earnings, and Liquidity Component ratings and Composite rating. | The Director determined the Capital, Asset Quality, Earnings, and Liquidity Component ratings and the Composite rating were appropriate. |
Division of Depositor and Consumer Protection | 5/24/2024 | Community Reinvestment ACT (CRA) Rating, more specifically relates to the "Needs to Improve" CRA Performance Evaluation (PE) rating. | The Director reviewed the request and determined that the "Needs to Improve" CRA PE rating was appropriate and consistent with the regulation and current interagency procedures and guidance. |
Division of Depositor and Consumer Protection | 5/13/2024 | The Bank's law firm met with the FDIC to discuss the above written determination the Director provided on April 5, 2024, and requested consideration of additional information and documents. | Upon careful consideration of the issues raised by the law firm on behalf of the Bank, the Director determined that the additional information and documents do not affect the prior conclusions and do not require any revisions to the written determination provided on April 5, 2024. |
Division of Depositor and Consumer Protection | 4/5/2024 | Compliance rating and assessment of Compliance Management System. | The Director reviewed the request and determined that the rating of "4" was appropriate and consistent with the Uniform Interagency Consumer Compliance Rating System, the FDIC’s Consumer Compliance Examination Manual, and regulatory guidance. The Director also determined that the Bank’s request for the FDIC to conduct a new examination was not warranted as the rating assigned in the 2022 Report of Examination was accurate. |
Division of Depositor and Consumer Protection | 2/20/2024 | Apparent violations of Section 5 of the Federal Trade Commission Act for unfair or deceptive acts or practices (UDAP) and the FDIC’s consideration of a formal enforcement action for the UDAP violations. | The Director determined that the Banks’ request for review of the UDAP violations through the FDIC’s supervisory appeals process cannot move forward at this time. The FDIC notified the Bank that the FDIC was reviewing the facts and circumstances to determine if a Civil Money Penalty was merited for the UDAP violations. This notification of a potential enforcement action temporarily suspended the Banks’ right to appeal the facts and circumstances forming the basis for the potential action, including the underlying apparent violations. |
Division of Risk Management Supervision | 2/15/2024 | Asset Quality rating and Matter Requing Board Attention concerning commercial real estate concentration risk management. | The Director determined the assigned Asset Quality rating and the Matter Requing Board Attention concerning commercial real estate concentration risk management were appropriate. |
Division of Depositor and Consumer Protection | 1/16/2024 | Apparent violation of the Fair Housing Act (FHA) related to lending activities. | The Director determined there was insufficient evidence to support the FHA violation. As such, the bank’s Report of Examination and CRA Performance Evaluation will be updated to remove the violation. |
Division of Risk Management Supervision | 1/3/2024 | Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk Component ratings and Composite rating. | The Director agreed to change the Asset Quality rating; however, the ratings for Capital, Management, Earnings, Liquidity, Sensitivity to Market Risk, and the Composite rating were deemed appropriate. |
Division | Date | Determination(s) Contested | Decision |
---|---|---|---|
Division of Depositor and Consumer Protection | 12/19/2023 | Review of the Community Reinvestment Act (CRA) rating. | The Director responded to the request for review by sending a letter which indicated that the disputed CRA rating is being vacated and the Region will withdraw the CRA Performance Evaluation and assign a CRA rating after completion of additional analysis of 2021 small business lending data. |
Division of Depositor and Consumer Protection | 11/13/2023 | Review of determinations set forth in Report of Examination and CRA PE. | The Director responded to the request for review by sending a letter which indicated that because the FDIC issued a Notice of Charges, the bank may contest any material supervisory determinations through the administrative enforcement process. |
Division of Risk Management Supervision | 10/2/2023 | Re-classification of Held-to-Maturity securities portfolio as Available-for-Sale. | The Director concurred with the examination determination. |
Division of Risk Management Supervision | 9/28/2023 | Management rating. | The Director concurred with the assigned Management rating. |
Division of Risk Management Supervision | 9/8/2023 | Management rating, level of fulfillment of Consent Order and Matters Requiring Board Attention, and apparent violations of the Bank Secrecy Act. | The Director concurred with each of the examination findings. |
Division of Risk Management Supervision | 5/26/2023 | Apparent violation of Federal Reserve Board Regulation O. | The Director concurred with the citation of the apparent violation. |