Less than a year after sanctions were imposed on Northwest Savings Bank, the Federal Deposit Insurance Corporation (FDIC) terminated its consent order on Friday.
As a result of a 2010 examination of compliance programs, FDIC had "reason to believe that the bank engaged in violations of law and/or regulations, including unfair and deceptive acts and practices in violation of... the Federal Trade Commission Act."
The bank's board of directors agreed to the issuance of a consent order.
"The consent order related to strengthening various components of Northwest Savings Bank's consumer compliance management system," according to a Friday press release from Northwest. "The termination of the consent order by the FDIC reflects the diligence of Northwest Savings Bank's board of directors and staff in addressing the terms of the consent order as well as its continued focus on service to its customers."
"With the consent agreement, the bank has consented, without admitting or denying any charges of violations of law and/or regulations, to the issuance of this consent order, order for restitution, and order to pay by the FDIC," according to the order.
In addition to a fine of $325,000 and restitution in an amount not to exceed $375,000, Northwest was required to develop and implement a compliance management system approved by FDIC, retain a qualified compliance officer, maintain a compliance audit function to include policies, procedures, process, and staff, adopt and maintain a system to ensure proper management of third-party risk, and several other practices and procedures to avert future problems.
The order, dated Aug. 8, 2011, was terminated Friday.
"The company anticipates that an informal regulatory understanding with respect to continued consumer compliance may be requested," the release said.
Northwest did not issue any additional comments on the order nor its termination.