SCNB, regulators strike a deal over ‘unsound’ banking practices

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11/04/2010 2:37 PM |

Suffolk County National Bank is working with a federal regulatory agency to address what it described as “unsafe and unsound” banking practices by SCNB, bank president and CEO Gordon Huszagh said this week.
“We certainly take this very seriously,” he said. “It’s in all of our interests to comply as quickly as possible.”
The bank and the federal Office of the Comptroller of the Currency (OCC) have reached an agreement requiring SCNB to take several steps to ensure its continued financial strength. They include determining how much money should be set aside for bad risks, defining how the bank will maintain sufficient capital and evaluating the skills and experience of some senior managers, including Mr. Huszagh.
He described the OCC’s findings as “very technical and very administrative in nature,” but vowed the company will work to address the concerns “and comply with the agreement as quickly as possible.”
Just a few weeks ago the OCC gave the bank an “outstanding” rating for its performance in serving the community by providing home and business mortgages.
“We are meeting all our regulatory requirements to be classified as a well-capitalized bank,” said Mr. Huszagh. “We’re certainly open for business and we’ll continue to serve our customers and all our commitments to the best of our ability.”
Suffolk County National Bank has been in business since 1890 and recently opened its 30th branch.
tkelly@timesreview.com

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