Common use of STRATEGIC PLAN Clause in Contracts

STRATEGIC PLAN. (1) The Bank (subject to Board review and ongoing monitoring) shall continue to implement and adhere to the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 (“Strategic Plan”). (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. 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 any revisions to the Strategic Plan. (3) Strategic Plan revisions shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, product line development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives 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 over the short and long term; (d) an identification of the Bank’s present and future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (3)(c) of this Article; (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 (3)(c) of this Article; (f) product line development and market segments that the Bank intends to promote or develop;a 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; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s operating environment; (h) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting goals and objectives of the Strategic Plan.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Bank Within sixty (subject to 60) days of the date of this Agreement, the Board review shall develop an updated and ongoing monitoring) shall continue to implement and adhere to revised Strategic Plan (hereinafter the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 (“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, together with strategies to achieve those objectives, and shall include, at a minimum: (a) a funding strategy to improve the Bank’s core deposit base and reduce liquidity and interest rate risk on the balance sheet; (b) a management information system to measure, monitor, and report core deposit sources, volume, and trends to the Board; (c) reasonable mortgage banking projections based on historical performance and an analysis of relevant market and economic conditions; (d) a formal process for opening and closing loan production offices; and, (e) a formal process for measuring on an ongoing basis key performance indicators to determine the success of each loan production office - which shall include, but is not limited to: sales volumes, overhead expenses, cost and benefit analysis, and conditions of the regulatory environment. (2) The Board shall review and update Prior to the adoption by the Board, a copy of the Bank’s updated Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. 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 (Strategic Plan. The Bank, subject to Board review and ongoing monitoring) , shall implement and thereafter ensure adherence to any revisions to the Strategic PlanPlan and any amendments or revisions thereto. (3) Strategic Plan revisions The Board shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, product line development and market segments ensure that the Bank intends has processes, personnel, and control systems to promote or develop, together with strategies ensure implementation of and adherence to achieve those objectives and, at a minimum, include:the Strategic Plan developed pursuant to this Article. (a4) The Board shall review and update the Bank’s Strategic Plan at least annually or more frequently, if necessary, or if requested by the Assistant Deputy Comptroller in writing. Annual updates shall be forwarded to the Assistant Deputy Comptroller for review and a mission statement that forms the framework for the establishment written determination of strategic goals and objectives;no supervisory objection. (b5) The Bank may not initiate any action that deviates significantly from the Strategic Plan (that has received no supervisory objection from the Assistant Deputy Comptroller and that has been adopted by the Board) without a written determination of no supervisory objection from the Assistant Deputy Comptroller. The Board must give the Assistant Deputy Comptroller at least thirty (30) days 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 present ’s condition including a profitability analysis and future operating environment; (c) an evaluation of the development of strategic goals and objectives to be accomplished over the short and long term; (d) an identification adequacy of the Bank’s present organizational structure, staffing, MIS, internal controls, and future product lines (assets written policies and liabilities) that will be utilized procedures to accomplish identify, measure, modify, and control the strategic goals and objectives established risks associated with the change in (3)(c) the Strategic Plan. For the purposes of this Article;, changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, (A) a change in the Bank’s asset composition or size, products and services, marketing strategies, marketing partners, underwriting practices and standards, credit administration, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategies, any of which, alone or in aggregate, may have a material impact on the Bank’s operations or financial performance; (B) changes to dealers or strategic partners that may have a material impact on the Bank’s operations or financial performance; or (C) any other changes in personnel or operations that may have a material impact on the Bank’s operations or financial performance. (e6) Until the Strategic Plan required under this Article has received a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall not significantly deviate from the products, services, asset composition and/or size, structure, operations, policies, procedures, and/or market(s) of the Bank that existed before this Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation. Any request to the Assistant Deputy Comptroller for prior written determination of no supervisory objection to a significant deviation must be submitted to the Assistant Deputy Comptroller at least thirty (30) days in advance of the significant deviation, 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 ’s organizational structure, staffing, MIS, internal operationscontrols, staffing requirements, board and management information systems and written policies and procedures for their adequacy to identify, measure, monitor, and contribution to control the accomplishment of the goals and objectives developed under (3)(c) of this Article; (f) product line development and market segments that the Bank intends to promote or develop;a 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; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s operating environment; (h) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting goals and objectives of the Strategic Planchange.

Appears in 1 contract

Sources: Formal Agreement

STRATEGIC PLAN. (1) The Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank (subject adherence to Board review and ongoing monitoring) shall continue to implement and adhere to a written strategic plan for the Bank, including its operating subsidiaries, covering at least a three-year period. The strategic plan submitted shall include: (a) key business lines including products and services. Plans for existing products/services should be outlined (growth, percent of balance sheet, modifications) as well as material new products and services under consideration (significance to profitability, balance sheet, etc.); (b) a staffing plan including projected staffing levels of general staff, and lending staff in particular, as well as senior management team commensurate with the size and risk profile of the institution. Reevaluation of your staffing levels and the competency & organization of your management team should be performed on an annual basis; (c) risk management infrastructure; (d) plans regarding mergers and/or acquisitions; (e) a profit plan that identifies the major areas in and means by which the board will seek to improve the Bank’s operating performance; (f) realistic and comprehensive budgets, including projected balance sheets and year-end income statements; (g) a budget review process to monitor both the Bank’s income and expenses, and to compare actual figures with budgetary; (h) a formal management succession plan for senior officer positions; and (i) the strategic plan needs to be reevaluated and approved by the Assistant Deputy Comptroller in 2013 (“Strategic Plan”)board on an annual basis and/or if a significant event takes place. (2) The Board shall review and update Upon adoption, a copy of the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and plan shall be submitted forwarded to the Assistant Deputy Comptroller for a review and prior written determination of no supervisory objection. The next Strategic Plan update must be submitted Upon receiving a determination of no later than January 31, 2015. At the next Board meeting following receipt of supervisory objection from 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 any revisions adhere to the Strategic Planstrategic plan. Copies of any reviews and updates shall be submitted to the Assistant Deputy Comptroller. (3) Strategic Plan revisions The Board shall establish objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, product line development and market segments ensure that the Bank intends to promote or develophas processes, together with strategies to achieve those objectives andpersonnel, 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 over the short and long term; (d) an identification of the Bank’s present and future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (3)(c) of this Article; (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 (3)(c) of this Article; (f) product line development and market segments that the Bank intends to promote or develop;a 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; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in ensure implementation of and adherence to the Bank’s operating environment; (h) specific plans plan developed pursuant to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting goals and objectives of the Strategic Planthis Article.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Within ninety (90) days of the date of this Agreement, the Bank (subject shall submit to Board review and ongoing monitoring) shall continue to implement and adhere to the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 for review and prior written determination of no supervisory objection an acceptable revised written strategic plan for the Bank, covering at least a 5-year period (“Strategic Plan”). (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. 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 any revisions to the Strategic Plan. (3) Strategic Plan revisions shall establish objectives for the Bank's overall risk profile, ’s earnings performance, growth, balance sheet mix, off-balance sheet activitiesinterest rate risk, liability structurestaffing needs and expertise, capital adequacy, product line development and market segments that the Bank intends to promote or developtechnology, together with strategies to achieve those objectives andobjectives, and shall, 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 over the short accomplished, including key financial indicators and long termrisk tolerances; (d) an identification of the Bank’s present and future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (3)(c) of this Article; (eb) an evaluation of the Bank's internal operations, staffing requirements, board and management information systems and policies systems, policies, and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under paragraph (3)(c1)(a) of this Article; (fc) product line development and market segments that the Bank intends to promote or develop;a a 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; (gd) control an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to mitigate identify, measure, monitor, and control risks within the product lines; and (e) a detailed assessment of the Bank’s technology needs to meet the Strategic Plan’s goals and objectives. (2) Within thirty (30) days following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the revised Strategic Plan or to any subsequent 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 at least annually, and more frequently if necessary or if required by the OCC in writing, and amend the Strategic Plan as needed or directed by the OCC. Any amendment to the Strategic Plan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. (3) 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 Formal Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to such significant deviation. (4) Any request by the Bank for prior written determination of no supervisory objection to a significant deviation described in paragraphs (2) or (3) 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 planned new productsthe proposed change. (5) For the purposes of this Article, growthchanges that may constitute a significant deviation include, or any proposed changes but are not limited to, a change in the Bank’s operating environment; (h) specific plans to establish responsibilities marketing strategies, products and accountability for the strategic planning processservices, new productsmarketing partners, growth goalsunderwriting practices and standards, asset composition, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or proposed changes funding strategy, any of which, alone or in the aggregate, may have a material effect on the Bank’s operating environmentoperations or financial performance; and (i) systems to monitor or any other changes in personnel, operations, or external factors that may have a material effect on the Bank’s progress in meeting goals and objectives operations or financial performance. (6) At least quarterly, a written evaluation of the Bank’s performance against the Strategic PlanPlan shall be prepared by Bank management and submitted to the Board. Within thirty (30) 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

Sources: Compliance Agreement

STRATEGIC PLAN. (1) The Bank (subject to By June 30, 2019, the Board review and ongoing monitoring) shall continue to implement and adhere forward to the Assistant Deputy Comptroller, pursuant to paragraph (2) of this Article, a revised written Strategic Plan for the Bank, covering at least a three-year strategic plan submitted 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, and capital and liquidity adequacy, together with strategies to achieve those objectives. The Strategic Plan shall include an assessment of management’s qualifications for overseeing and approved by the Assistant Deputy Comptroller in 2013 (“Strategic Plan”)managing current and future levels of commercial credit risk. (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required Prior to adoption by the Assistant Deputy Comptroller in writing. Revisions to Board, a copy of the revised Strategic Plan, including amendments and any subsequent amendments, revisions, or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. 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 (management, subject to Board review and ongoing monitoring) , shall immediately implement and thereafter ensure adherence to any revisions to the Strategic PlanPlan and any amendments or revisions thereto. The Board shall maintain detailed minutes of its review and adoption of the revised Strategic Plan and any subsequent amendments, revisions, or updates thereof. (3) Until the Strategic Plan revisions shall establish objectives required under this Article has been submitted by the Bank for the Bank's overall risk profileAssistant Deputy Comptroller’s review, earnings performancehas received a written determination of no supervisory objection from the Assistant Deputy Comptroller, growthand has been adopted by the Board, balance sheet mixthe Bank shall not significantly deviate from the products, off-balance sheet activitiesservices, liability asset composition and size, funding sources, structure, capital adequacyoperations, product line development policies, procedures, and market segments that markets of the Bank intends 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 promote or develop, together with strategies to achieve those objectives and, at a minimum, include:such significant deviation. (a4) The Bank shall not initiate any action that significantly deviates from a mission statement Strategic Plan (that forms has received written determination of no supervisory objection from the framework for Assistant Deputy Comptroller and has been adopted by the establishment Board) without a prior written determination of strategic goals and objectives;no supervisory objection from the Assistant Deputy Comptroller. (b5) Any request by the Bank for prior written determination of no supervisory objection to a significant deviation described in paragraphs (3) or (4) 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 present ’s condition and future operating environment; (c) risk profile, including a profitability analysis and an evaluation of the development of strategic goals and objectives to be accomplished over the short and long term; (d) an identification adequacy of the Bank’s present organizational structure, staffing, management information systems, internal controls, and future product lines written policies and procedures to identify, measure, monitor, and control the risks associated with the proposed change. (assets 6) 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 marketing strategies, products and liabilitiesservices, 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 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. (7) that At 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 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 the evaluation and discussion of any required corrective actions to address any identified shortcomings shall be utilized documented in detail in the Board’s meeting minutes. Upon completion of the Board’s review, the Board shall submit to accomplish the strategic goals 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. The written evaluation, including detailed meeting minutes documenting the Board’s discussion of the evaluation, shall be included as part of the Board’s required quarterly progress report. (8) The Board shall review and objectives established update the Strategic Plan, including after expiration of the three-year period referenced in paragraph (3)(c1) of this Article; (e) an evaluation of the Bank's internal operations, staffing requirements, board at least annually and management information systems and policies and procedures for their adequacy and contribution to the accomplishment of the goals and objectives developed under (3)(c) of this Article; (f) product line development and market segments that the Bank intends to promote more frequently if necessary or develop;a financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered if required by the Strategic Plan; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes Assistant Deputy Comptroller in the Bank’s operating environment; (h) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting goals and objectives of the Strategic Planwriting.

Appears in 1 contract

Sources: Compliance Agreement

STRATEGIC PLAN. (1) The Effective immediately, the Bank shall only declare dividends: (subject to Board review a) when the Bank is in compliance with the Bank’s Three-Year Plan; (b) when the Bank is in compliance with 12 U.S.C. §§ 56 and ongoing monitoring60; and (c) shall continue to implement and adhere to with the three-year strategic plan submitted to and approved by prior written approval from the Assistant Deputy Comptroller in 2013 (“Strategic Plan”)Comptroller. (2) The Within sixty (60) days of the date of this Agreement, the Board shall review develop a written strategic plan that covers at least the next three years (hereafter the Bank’s “Three-Year Plan”), complete with specific time frames that incorporate the strategic and update other requirements of this Article. Copies of the Strategic Bank’s Three-Year Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted forwarded to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. At the next Board meeting following Upon receipt of the Assistant Deputy Comptroller’s prior written determination of no supervisory objection, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall immediately implement and thereafter ensure adherence to any revisions to the Strategic Bank’s Three-Year Plan, as modified by the Assistant Deputy Comptroller, if appropriate. (3) Strategic The Bank’s Three-Year Plan revisions shall establish objectives and projections for the Bank's ’s overall risk profile, earnings performance, growthgrowth expectations, balance sheet mix, off-balance sheet activities, liability structure, capital and liquidity adequacy, product line development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives andobjectives, at that are specific, measurable, and verifiable. At a minimum, the Bank’s Three-Year Plan shall address or include: (a) an assessment of the Bank’s present and future operating environment; (b) 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 over the short and long term, including focusing on improving trends in asset quality, reducing the level of concentrations of credit, and improving earnings; (d) an identification of specific plans to establish responsibilities and accountability for the strategic planning process, new products, loan growth, proposed changes in the Bank’s present operating environment, and future product lines reduction of problem assets; (assets e) recognition that the Bank cannot offer or introduce new products, create or purchase any new subsidiaries, or enter new market segments until it adopts and liabilitiesimplements appropriate risk management systems and receives prior written determination of no supervisory objection from the Assistant Deputy Comptroller; (f) a dividend policy that will be utilized to accomplish only permits the strategic goals and objectives established declaration of a dividend in accordance with Paragraph (3)(c1) of this Article; (eg) an evaluation specific plans for the maintenance of adequate capital as required by the Bank's internal operations, staffing requirements, board OCC and management information systems and policies and procedures for their adequacy and contribution sufficient to the accomplishment of the goals and objectives developed be well capitalized under (3)(c) of this Article12 C.F.R. Part 6; (fh) product line development and market segments the primary source(s), especially those that are not credit sensitive, from which the Bank intends will maintain a capital structure sufficient to promote or develop;a meet the Bank’s needs; (i) contingency plans that identify alternative capital sources should the primary source(s) under subparagraph (g) not be available; (j) a financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plannext three years; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s operating environment; (h) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (ik) systems to monitor the Bank’s progress in meeting the plan’s goals and objectives of the Strategic Planobjectives; (l) monthly progress reports comparing actual results to defined targets for Board review; and (m) specific processes to hold management accountable for explaining significant deviations from targeted results and identifying options to achieve targeted results.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Bank (subject to Board review and ongoing monitoring) shall continue to implement and adhere to the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 (“develop a written Strategic Plan”). (2) . The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. 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 any revisions to the Strategic Plan. (3) Strategic Plan revisions shall should 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, reduction of any risk surrounding brokered deposits, product line development development, and market segments that the Bank intends to promote or develop. Within ninety (90) days of the effective date of this Agreement, together with strategies the Bank shall provide a copy of the plan to achieve those the Assistant Deputy Comptroller for his prior determination of no supervisory objection. Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and ensure adherence to the Strategic Plan. (2) If the OCC determines, in its sole judgment, that the Bank has failed to submit an acceptable strategic plan as required by this Article or has failed to implement or adhere to the Bank’s specific, measurable, and verifiable objectives andincluded in the strategic plan, at then within fifteen (15) days of receiving written notice from the OCC, the Board shall develop and shall submit to the Assistant Deputy Comptroller for his review and prior determination of no supervisory objection a minimumrevised strategic plan, include:which shall detail the Bank’s proposal to correct any deficiencies identified by the Assistant Deputy Comptroller. (a) a mission statement After the Assistant Deputy Comptroller has advised the Bank that forms he has no supervisory objection to the framework for revised strategic plan, the establishment Board shall immediately implement, and shall thereafter ensure adherence to, the terms of the revised strategic goals and objectives;plan. (b) Failure to submit a timely, acceptable revised strategic plan may be deemed a violation of this Agreement, in the OCC’s sole discretion. (3) The Bank must give the Assistant Deputy Comptroller at least sixty (60) days advance, written notice of its intent to deviate significantly from the Strategic Plan, and the Bank must receive the Assistant Deputy Comptroller’s written supervisory no objection prior to significantly deviating 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 personnel, operations or external factors that may have a material impact on the Bank's operations or financial performance. (b) Prior to making any changes that significantly deviate from the Bank's strategic plan, the Board shall perform 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 product or service. The evaluation shall include an assessment of the Bank's present and future operating environment; (c) the development impact of strategic goals and objectives to be accomplished over the short and long term; (d) an identification of the Bank’s present and future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (3)(c) of this Article; (e) an evaluation of such change on the Bank's internal operationscondition, 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 (3)(c) of this Article;including a profitability analysis. (f4) product line development and market segments The Board shall ensure that the Bank intends to promote or develop;a financial forecast to include projections for major balance sheet has processes, personnel, and income statement accounts and desired financial ratios over the period covered by the Strategic Plan; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in ensure implementation of and adherence to the Bank’s operating environment; (h) specific plans plan developed pursuant to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting goals and objectives of the Strategic Planthis Article.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Bank Within ninety (subject to Board review and ongoing monitoring90) shall continue to implement and adhere to days from the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 (“Strategic Plan”). (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination effective date of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objectionthis Agreement, the Board shall adopt adopt, implement, and the while this Agreement is in effect ensure Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to any revisions to a written strategic plan for the Strategic Plan. (3) Strategic Plan revisions Bank, which shall cover at least a three-year period. The strategic plan shall establish objectives for the Bank's overall risk profile, earnings performance, growthgrowth expectations, 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, at a minimum, include: (a) a mission statement that forms the framework frameword 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 over the short and long term; (d) an identification indemnification of the Bank’s 's present and future product lines (assets and liabilities) that will be utilized to accomplish the accomplishthe strategic goals and objectives established in (3)(c1)(c) of this Article; (e) an evaluation of the Bank's internal operations, staffing requirements, board and management information systems sysytems and policies and procedures for their adequacy and contribution to the accomplishment of the goals and objectives developed under (3)(c1)(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 Bank intends to promote or develop;a develop; (h) an action plan to improve Bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames, which shall include: (i) identification of the major areas in and means by which the Board will seek to improve the Bank's operating performance: (ii) realistic and comprehensive budgets, including projected balance sheets and year-end income statements; (iii) a budget review process to monitor both the Bank's income and expenses, and to compare actual figures with budgetary projections; and (iv) a description of the operating assumptions that form the basis for major projected income and expense components. (i) a financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Planstrategic plan; (gj) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s operating environment; (hk) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (il) systems to monitor the Bank’s progress in meeting the plan’s goals and objectives objectives. (2) Upon adoption, a copy of the Strategic Planplan shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the strategic plan. (3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the plan developed pursuant to this Article.

Appears in 1 contract

Sources: Banking Agreement (Savannah Bancorp Inc)

STRATEGIC PLAN. (1) The Bank Within one hundred fifty (subject to Board review and ongoing monitoring150) shall continue to implement and adhere to the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 (“Strategic Plan”). (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objectiondays, the Board shall adopt and develop a written strategic plan for the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to any revisions to the Strategic Plan. (3) Strategic Plan revisions covering at least a three-year 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 adequacy, product line development and products or market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives 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; (cb) the development of strategic goals and objectives to be accomplished over the short and long term; (d) an identification of the Bank’s present and future product lines (assets and liabilities) that will be utilized to accomplish the strategic goals and objectives established in (3)(c) of this Article; (ec) an evaluation of the Bank's internal operations, staffing requirements, board Board and management information systems and policies and procedures for their adequacy and contribution to the accomplishment of the goals and objectives developed under (3)(c1)(c) of this Article; (d) a management employment and succession program to promote the retention and continuity of capable management; (e) an action plan to improve Bank earnings and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames; (f) product line development and market segments that the Bank intends to promote or develop;a a financial forecast to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Planstrategic plan; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s operating environment; (h) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting the plan’s goals and objectives objectives. (2) Upon completion, the Bank's strategic plan shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Strategic PlanAssistant Deputy Comptroller, the Bank shall adopt, implement and ensure the Bank’s adherence to the strategic plan. (3) The plan shall be implemented pursuant to the time frames set forth within the plan unless events dictate changes to the plan. Where the Board considers changes appropriate, those changes with supporting reasons shall be submitted in writing to the Assistant Deputy Comptroller for prior determination of no supervisory objection. (4) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the plans developed pursuant to this Article.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Bank Within one hundred twenty (subject to Board review and ongoing monitoring120) shall continue to implement and adhere to days of the three-year strategic plan submitted to and approved by date of this Agreement, the Assistant Deputy Comptroller in 2013 (“Strategic Plan”). (2) The Board shall review revise and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted forward to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31review, 2015. 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 pursuant to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to any revisions to the Strategic Plan.paragraph (3) of this Article, the Bank’s written Strategic Plan. The Strategic Plan revisions shall cover at least a three-year period and shall include reasonable projections of major balance sheet and income statement components. The Strategic Plan shall establish objectives for the Bank'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 adequacy, product line development maintenance of sound credit quality, and market segments that the Bank intends to promote or developrisk management, together with strategies to achieve those objectives 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 over the short and long term; (d) an identification the development and maintenance of the Bank’s present and future product lines (assets and liabilities) that will be utilized action plans to accomplish achieve the strategic goals and objectives established in developed under subparagraph (3)(c1) (c) of this Article; (e) an evaluation of the Bank's internal operations, staffing requirements, board and management information systems systems, and policies and procedures for their adequacy and contribution to the accomplishment of the strategic goals and objectives developed under subparagraph (3)(c1)(c) of this Article; (f) an identification and assessment of the Bank’s present and planned product line development lines (assets and market segments that liabilities) and services and identification of appropriate risk management systems to identify, measure, monitor, and control risks within the Bank intends product lines and services; (g) a management employment and succession program to promote or develop;a the retention and continuity of capable management; (h) a realistic and comprehensive budget that corresponds to the Strategic Plan’s goals and objectives; (i) an action plan to improve and sustain bank earnings to a profitable level and accomplish identified strategic goals and objectives, including individual responsibilities, accountability and specific time frames; (j) a 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) a detailed description and assessment of major capital expenditures required to achieve the objectives of the Strategic Plan; (gl) control systems to mitigate risks associated with planned new products, growth, or any proposed changes in the Bank’s operating environment; (hm) specific plans to establish a sound risk management program; (n) a sound interest rate risk management program; (o) a sound liquidity management program and contingency funding plan; (p) assigned responsibilities and accountability for the strategic planning process, new productsincluding development, growth goalsimplementation, or proposed changes in and adherence within the Bank’s operating environmenttimeframes consistent with the requirements of this Article; and (iq) a description of the systems and metrics to monitor the Bank’s progress in meeting goals and objectives of thereafter adhering to the Strategic Plan’s goals and objectives.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Bank (subject to Board review and ongoing monitoring) shall continue to implement and adhere to the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 (“Strategic Plan”). (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. 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 any revisions to the Strategic Plan. (3) its written 2008 Strategic Plan revisions shall establish titled “Grow Right” (dated January 1, 2007). The strategic plan establishes objectives for the Bank's overall risk profile, earnings performance, growth, balance sheet mix, 1 Adjusted total assets is defined in 12 C.F.R. § 3.2(a) as the average total asset figure used for Call Report purposes minus end-of-quarter intangible assets. 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. (2) The Bank must give the Assistant Deputy Comptroller at least sixty (60) days advance, together with strategies written notice of its intent to achieve those objectives and, at a minimum, include:deviate significantly from the Strategic Plan. (a) For purposes of this Article, changes that may constitute a mission statement 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 personnel, operations or external factors that forms may have a material impact on the framework for the establishment of strategic goals and objectives;Bank's operations or financial performance. (b) Prior to making any changes that significantly deviate from the Bank's strategic plan, the Board shall perform 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 product or service. The evaluation shall include an assessment of the impact of such change on the Bank's present and future operating environment;condition, including a profitability analysis. (c3) If the development of OCC determines, in its sole judgment, that the Bank has failed to submit an acceptable strategic goals and objectives plan as required by this Article or has failed to be accomplished over the short and long term; (d) an identification of implement or adhere to the Bank’s present specific, measurable, and future product lines (assets and liabilities) that will be utilized to accomplish verifiable objectives included in the strategic goals plan, then within fifteen (15) days of receiving written notice from the OCC of such fact, the Board shall develop and objectives established in (3)(c) shall submit to the Assistant Deputy Comptroller for his review and prior determination of this Article; (e) an evaluation of no supervisory objection a revised strategic plan, which shall detail the Bank's internal operations, staffing requirements, board and management information systems and policies and procedures for their adequacy and contribution ’s proposal to the accomplishment of the goals and objectives developed under (3)(c) of this Article; (f) product line development and market segments that the Bank intends to promote or develop;a 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; (g) control systems to mitigate risks associated with planned new products, growth, or any proposed changes correct deficiencies resulting in the Bank’s operating environment; (h) specific plans failure and to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in adhere to the Bank’s operating environment; andoriginal strategic plan. (ia) After the Assistant Deputy Comptroller has advised the Bank that he does not take supervisory objection to the revised strategic plan, the Board shall immediately implement, and shall thereafter ensure adherence to, the terms of the revised strategic plan. (b) Failure to submit a timely, acceptable revised strategic plan may be deemed a violation of this Agreement, in the exercise of the OCC’s sole discretion. (4) The Board shall ensure that the Bank has processes, personnel, and control systems to monitor ensure implementation of and adherence to the Bank’s progress in meeting goals and objectives of the Strategic Planplan developed pursuant to this Article.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Bank Within sixty (subject to Board review and ongoing monitoring60) shall continue to implement and adhere to the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 (“Strategic Plan”). (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. At the next Board meeting following receipt days of the Assistant Deputy Comptroller’s written determination date of no supervisory objectionthis Agreement, the Board shall adopt and develop a written Strategic Plan for the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to any revisions to the Strategic Plan. (3) covering at least a three-year period. The Strategic Plan revisions shall establish objectives for the Bank's ’s overall risk profile, earnings performance, liquidity, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in classified and special mention assets, product line development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives and, at a minimum, include: (a) a mission statement that forms plans and strategies to restructure the framework for Bank’s operations, strengthen and improve the establishment of strategic goals Bank’s earnings, and objectivesachieve positive core income and profitability; (b) an assessment of strategies for ensuring that the Bank has the financial and personnel resources necessary to implement and adhere to the strategic plan, adequately support the Bank's present ’s risk profile, maintain compliance with applicable regulatory capital requirements, comply with this Agreement, and future operating environmentmaintain appropriate levels of liquidity; (c) the development of strategic goals quarterly pro forma financial projections (balance sheet, regulatory capital ratios, income statement, classified assets, special mention assets, and objectives to be accomplished over the short key financial ratios) and long term;budget; and (d) identification of all relevant assumptions made in formulating the strategic plan and retention of documentation supporting such assumptions. (2) Prior to adoption by the Board, a copy of the Strategic Plan shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Revisions to the Bank’s 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 at least annually, and more frequently if necessary, or as required by the Assistant Deputy Comptroller in writing. 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 and any amendments and revisions thereto. (3) Until the Strategic Plan, or any revisions thereto, required under this Article has been submitted by the Bank for OCC review, and the Bank has received a written determination of no supervisory objection from the OCC, and is being implemented by the Bank, 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 before this Agreement without first obtaining the OCC’s prior written determination of no supervisory objection to such significant deviation. Any request to the OCC for prior written determination of no supervisory objections to a significant deviation must be submitted to the Assistant Deputy Comptroller at least 30 days in advance of the significant deviation and shall include: (a) an identification assessment of the adequacy of the Bank’s present management, staffing levels, organizational structure, financial condition, capital adequacy, funding sources, management information systems, internal controls, and future product lines written policies and procedures with respect to the proposed significant deviation, and (assets b) the Bank’s evaluation of its capability to indentify, measure, monitor, and liabilitiescontrol the risks associated with the proposed significant deviation. (4) For the purposes of this Article, once the Bank has received no supervisory objection to its Strategic Plan, changes that will be utilized may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank's products, services, asset composition and size, funding sources, structure, operations, policies, procedures, and markets, any of which, alone or in the 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. (5) If the OCC determines, in its sole judgment, that the Bank has failed to accomplish 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 goals and objectives established in plan, for which the OCC has taken no supervisory objection pursuant to paragraph (3)(c2) of this Article; , then within fifteen (e15) an evaluation days of receiving written notice from the Bank's internal operationsOCC of such fact, staffing requirements, board the Board shall develop and management information systems and policies and procedures for their adequacy and contribution shall submit to the accomplishment OCC for its review and prior determination of the goals and objectives developed under (3)(c) of this Article; (f) product line development and market segments that the Bank intends to promote or develop;a 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; (g) control systems to mitigate risks associated with planned new productsno supervisory objection, growth, or any proposed changes in the Bank’s operating environment; (h) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting goals and objectives of the a revised Strategic Plan. (6) Failure to submit a timely, acceptable Strategic Plan may be deemed a violation of this Agreement, in the exercise of the OCC’s sole discretion.

Appears in 1 contract

Sources: Banking Agreement

STRATEGIC PLAN. (1) The Bank Within ninety (subject 90) days of the date of this Agreement, the Board shall submit to Board review and ongoing monitoring) shall continue to implement and adhere to the three-year strategic plan submitted to and approved by the Assistant Deputy Comptroller in 2013 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, and capital and liquidity adequacy, together with strategies to achieve those objectives, and shall, at a minimum, include: (a) 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; (b) a risk profile that evaluates credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation risks in relationship to capital; (c) an evaluation of the Bank’s internal operations, staffing requirements and staff competency, 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)(a) of this Article; (d) a realistic and comprehensive budget that corresponds to the Strategic Plan’s goals and objectives; (e) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile; (f) assigned roles, responsibilities, and accountability for the strategic planning process; and (g) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives. (2) The Board shall review and update Within thirty (30) days following the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31, 2015. At the next Board meeting following Board’s receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objectionobjection to the Strategic Plan or to any subsequent update or amendment to 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 any revisions the Strategic Plan. The Board shall review the effectiveness of the Strategic Plan and update the Strategic Plan to cover the next three-year period at least annually, 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 PlanPlan must be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. (3) Until the Strategic Plan revisions shall establish objectives required under this Article has been submitted by the Bank for the Bank's overall risk profileAssistant Deputy Comptroller’s review, earnings performancehas received a written determination of no supervisory objection from the Assistant Deputy Comptroller, growthand has been adopted by the Board, balance sheet mixthe Bank shall not significantly deviate from the products, off-balance sheet activitiesservices, liability asset composition and size, funding sources, structure, capital adequacyoperations, product line development policies, procedures, and market segments that markets of the Bank intends that existed immediately before the effective date of this Formal Agreement without first obtaining the Assistant Deputy Comptroller’s prior written determination of no supervisory objection to promote or develop, together with strategies to achieve those objectives and, at a minimum, include:such significant deviation. (a4) The Bank may not initiate any action that significantly deviates from a mission statement Strategic Plan (that forms has received written determination of no supervisory objection from the framework for Assistant Deputy Comptroller and has been adopted by the establishment Board) without a prior written determination of strategic goals and objectives;no supervisory objection from the Assistant Deputy Comptroller. (b5) 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 present ’s condition and future operating environment; (c) risk profile, including a profitability analysis and an evaluation of the development of strategic goals and objectives to be accomplished over the short and long term; (d) an identification adequacy of the Bank’s present organizational structure, staffing, management information systems, internal controls, and future product lines written policies and procedures to identify, measure, monitor, and control the risks associated with the proposed change. (assets and liabilities6) that will be utilized to accomplish For the strategic goals and objectives established in (3)(c) 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. (e7) an Within forty-five (45) days after the end of each quarter, a written evaluation of the Bank's internal operations, staffing requirements, board ’s performance against the Strategic Plan shall be prepared by Bank management and management information systems and policies and procedures for their adequacy and contribution submitted to the accomplishment Board. Within thirty (30) days after submission of the goals evaluation, the Board shall review the evaluation and objectives developed under (3)(c) determine the corrective actions the Board will require Bank management to take to address any identified shortcomings. The Board’s review of this Article; (f) product line development the evaluation and market segments that 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 intends to promote or develop;a financial forecast take to include projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic Plan; (g) control systems to mitigate risks associated with planned new products, growth, or address any proposed changes in the Bank’s operating environment; (h) specific plans to establish responsibilities and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environment; and (i) systems to monitor the Bank’s progress in meeting goals and objectives of the Strategic Planidentified shortcomings.

Appears in 1 contract

Sources: Regulatory Compliance Agreement

STRATEGIC PLAN. (1) The Bank Within ninety (subject to Board review and ongoing monitoring90) shall continue to implement and adhere to days of the three-year strategic plan submitted to and approved by date of this Agreement, the Assistant Deputy Comptroller in 2013 (“Strategic Plan”). (2) The Board shall review and update the Strategic Plan annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing. Revisions to the Strategic Plan, including amendments or updates, shall cover a three- year period and shall be submitted forward to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. The next Strategic Plan update must be submitted no later than January 31Comptroller, 2015. 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 pursuant to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to any revisions to the Strategic Plan. paragraph (3) of this Article, a written Strategic Plan revisions for the Bank, covering at least a three-year period. The Strategic Plan shall establish objectives for the Bank's ’s overall risk profile, earnings performance, and growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, product line development and market segments that the Bank intends to promote or develop, together with strategies to achieve those objectives andobjectives, and shall, 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 over the short accomplished, including key financial indicators and long termrisk tolerances; (dc) an identification assessment of the Bank’s present strengths, weaknesses, opportunities and future product lines (assets and liabilities) threats that will be utilized to accomplish the impact its strategic goals and objectives established in (3)(c) of this Article; (e) objectives, including an evaluation of the Bank's ’s internal operations, staffing requirements, board and management information systems and policies systems, risk management program policies, and procedures for their adequacy that includes; (i) identification of existing operational, compliance, strategic, and contribution reputation risks, and a written analysis of those risks; (ii) action plans and time frames to control risks where exposure is high, particularly with regard compliance, strategic, and reputation risks, and BSA/AML risk; (iii) policies, procedures, or standards which limit the degree of risk the Board is willing to incur, consistent with the Bank’s Strategic Plan and financial condition. This requirement includes analyzing and limiting the risks associated with any new lines of business or growth that the Board undertakes. The procedures shall ensure that strategic direction and risk tolerance are effectively communicated and followed throughout the Bank and shall describe the actions to be taken where noncompliance with risk policies is identified; (d) a management employment and succession plan designed to promote adequate staffing and continuity of capable management consistent with the risk management program detailed in (c) above; (e) a realistic and comprehensive budget that corresponds to the accomplishment of the Strategic Plan’s goals and objectives developed under (3)(c) of this Article; (f) product line development and market segments that the Bank intends to promote or develop;a includes a financial forecast to include with projections for major balance sheet and income statement accounts and desired financial ratios over the period covered by the Strategic PlanPlan and describes and assesses major capital expenditures required to achieve the goals and objectives thereunder; (f) an action plan to improve and sustain the Bank’s earnings and accomplish identified strategic goals and objectives; (g) control systems to mitigate risks associated an identification and prioritization of initiatives and opportunities, including timeframes that comply with planned new products, growth, or any proposed changes in the Bank’s operating environmentrequirements of this Agreement; (h) specific plans an identification and assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to establish responsibilities identify, measure, monitor, and control risks within the product lines consistent with the risk management program policies detailed in (c) above; (i) concentration limits commensurate with the Bank’s strategic goals and objectives and risk profile; (j) assigned roles, responsibilities, and accountability for the strategic planning process, new products, growth goals, or proposed changes in the Bank’s operating environmentplanning; and (ik) a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives objectives. (2) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments, revisions, or updates, shall be submitted to the Assistant Deputy Comptroller for prior written determination of no supervisory objection. At the next Board meeting following receipt of the Assistant Deputy Comptroller’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 ensure adherence to the Strategic Plan and any amendments or revisions thereto. (3) 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. (4) 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. (5) Any request by the Bank for prior written determination of no supervisory objection to a significant deviation described in paragraphs (3) or (4) 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. 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 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 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. (6) After receipt of prior written determination of no supervisory objection to the Strategic Plan as required by paragraph (2) of this Article, a written evaluation of the Bank’s performance against the Strategic Plan shall be prepared by Bank management and submitted to the Board at least quarterly. Within thirty (30) 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. (7) The Board shall review and update the Strategic Plan, including after expiration of the three-year period referenced in paragraph one (1) of this Article, at least annually and more frequently if necessary or if required by the Assistant Deputy Comptroller in writing.

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Sources: Compliance Agreement