The Office of the Comptroller of the Currency found that 42 North Private Bank is in “troubled condition,” and therefore not an “eligible savings association,” per a cease-and-desist order announced Thursday.

The regulator issued the order in late January to the Canton, Massachusetts-based bank over its failure to fully comply with a 2017 consent order alleging unsafe or unsound practices.

That consent order specifically related to the bank’s credit administration, liquidity, earnings and information technology practices. At the time, it was called Admirals Bank.

Additionally, “new unsafe or unsound practices exist” at 42 North beyond those addressed in the 2017 consent order, the OCC said.

The order did not provide details of the practices at hand, and a spokesperson for the OCC said that the agency does not comment on enforcement actions beyond what is posted on its website.

A spokesperson for the bank did not return a request for comment.

While 42 North neither admitted nor denied the OCC’s findings, it consented to developing a new strategic plan to establish objectives for its overall risk profile, earnings performance, growth, liability structure, and capital and liquidity adequacy, including strategic goals and objectives and an assessment of its strengths, weaknesses, opportunities and threats that may impact those goals and objectives. 

The bank may not initiate any big changes that deviate from the strategic plan without permission from the OCC.

42 North must also increase its tier 1 capital ratio to at least 9% and its total capital ratio to 13%, must adopt a written interest rate risk program and adopt a written liquidity risk management program.

A monetary penalty did not accompany the order. However, the OCC “expressly reserves its right to assess civil money penalties or take other enforcement actions” if it deems that 42 North has failed to address the practices it relates to, according to the cease-and-desist order.