SYRACUSE — The federal Office of the Comptroller of the Currency (OCC) found unsafe banking practices related to asset quality and risk management at DeWitt–based Beacon Federal.
The bank agreed to take a number of steps over the next few months to correct the issues, according to documents filed Wednesday with the Securities and Exchange Commission. Beacon Federal has total assets of $1 billion and branches in DeWitt, Marcy, and Rome; Smartt and Smyrna, Tenn.; and Chelmsford, Mass.
A subsidiary, Beacon Comprehensive Services Corp., provides investments, insurance, tax preparation.
(Sponsored)
House of Representatives Passes $78 Billion Tax Package
On January 31, the House of Representatives overwhelmingly passed the Tax Relief for American Families and Workers Act of 2024, a tax package worth $78 billion. The bill was approved
Financial Inclusion through Affordable and Safe Banking Products
Financial inclusion is the accessibility of useful and affordable financial products and services to all individuals and businesses. Financial institutions have made strides in advancing these practices, most recently in
According to the agreement, Beacon must implement a three-year business plan and review the qualifications of all senior executive officers.
The bank must also establish new risk management practices, diversify its assets, improve internal controls on its commercial lending activities, and review and revise its loan policy. The agreement prevents Beacon Federal from declaring any dividends or making any other capital distributions without prior approval from the OCC.
In addition, the regulator imposed specific capital requirements on the bank.
Massachusetts–based Berkshire Hills Bancorp, Inc. (NASDAQ: BHLB), parent of Berkshire Bank, announced plans in May to acquire Beacon Federal’s parent company, Beacon Federal Bancorp (NASDAQ: BFED), in a $132 million deal.
Contact Tampone at ktampone@cnybj.com
