The Office of the Comptroller of the Currency has terminated a consent order against Quontic Bank, the lender announced Thursday.
The regulator hit Astoria, New York-based Quontic with the order in 2022 for failing to address certain regulatory concerns outlined in a 2018 agreement, which said Quontic had “unsafe or unsound banking practices” related to board oversight and funds management.
The 2018 agreement required the bank to revise its capital plan and improve its funds management.
The 2022 order required the bank maintain a total capital ratio of at least 13% and a leverage ratio greater than 9%.
A document published by the OCC on Thursday said 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.”
“This milestone is a testament to the extraordinary commitment of our entire organization,” Quontic CEO George 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. I am incredibly proud of what we have accomplished together.”
The order’s termination follows Quontic’s multiyear effort to strengthen its governance, risk management, compliance and operational infrastructure, the bank said.
“Our leadership team worked alongside every department to ensure this was done thoughtfully and thoroughly,” said Quontic President Robert Russell in a prepared statement. “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.”
The last enforcement action levied against Quontic came in 2023, when the Federal Reserve Bank of Philadelphia restricted the lender from distributing capital without express permission from regulators.
The Fed’s enforcement action database shows the 2023 order is still open and effective. A spokesperson for Quontic did not immediately respond to a request for comment on the action.
