OCC lifts consent order against Quontic Bank following governance overhaul
The Office of the Comptroller of the Currency has terminated a 2022 enforcement action against Quontic Bank, marking the end of a multi-year regulatory saga that began with concerns over board oversight and funds management.
The Office of the Comptroller of the Currency has terminated a consent order against Quontic Bank, the lender announced on Thursday. The regulator imposed the order in 2022 due to the bank's failure to address regulatory concerns from a 2018 agreement regarding unsafe or unsound banking practices related to board oversight and funds management. The termination follows Quontic's multi-year effort to strengthen governance, risk management, compliance, and operational infrastructure.
A document published by the OCC on Thursday stated that the regulator "believes that the safety and soundness of the Bank and its compliance with laws and regulations does not require the continued existence of the Order." The 2022 order had previously required the bank to maintain a total capital ratio of at least 13% and a leverage ratio greater than 9%.
Quontic CEO George Lazaridis described the remediation process as an opportunity to strengthen the bank's foundation, rather than merely a regulatory obligation. "This milestone is a testament to the extraordinary commitment of our entire organization," Lazaridis said in a prepared statement. "From day one, we viewed this process not simply as a regulatory obligation, but as an opportunity to strengthen the foundation of our bank."
Quontic President Robert Russell added that the leadership team worked with every department to strengthen governance, risk management, compliance, and operational infrastructure. "The successful termination of the Consent Order reinforces our commitment to operating with integrity and maintaining the highest standards for our customers, regulators, and the communities we serve," Russell said.
A separate 2023 enforcement action by the Federal Reserve Bank of Philadelphia restricting capital distribution remains open and effective. The Fed's enforcement action database shows the 2023 order is still in force, restricting the lender from distributing capital without express permission. A Quontic spokesperson did not immediately respond to requests for comment regarding the open Federal Reserve action.
