Monthly Archives: April 2016

An Outside Director’s Guide to Preparing for an Examination

Every FDIC-insured bank is subject to a periodic examination that is of significant importance to the bank and its business activities. If the examination goes well, the bank generally will be free to pursue those business activities it determines to be appropriate. If the results of the examination are less than satisfactory, the bank will… Read more

The Outside Directors’ Duties During an Examination Exit Meeting and Following

The examination exit meeting, which is the examination team’s opportunity to present the preliminary results of the examination to the bank’s directors and executive officers, is an important part of the examination process. This is particularly true when the results of the examination are less than stellar. It is not uncommon for outside directors to… Read more

Regulatory Expectations for Community Bank Directors

“They don’t really expect me to know that, do they?” This is almost always the first question asked by at least one (generally more) outside director when a regulatory or compliance concern comes to light. The good news is that regulators recognize community bank directors cannot be expected to know every one of the laws… Read more

The Directors’ Duties During an Examination

Many community bank directors believe they are not involved in the onsite regulatory examination process. This notion is incorrect. Each and every one of the bank’s directors, including outside directors, are closely examined and evaluated throughout the regulatory examination process, even if they are not present during the onsite examination. At a minimum, examination teams… Read more