The Office of the Comptroller of the Currency has entered into formal agreements with two community national banks following supervisory examinations that identified material safety and soundness deficiencies at each institution. The Fairfield National Bank of Fairfield, Illinois, and The First National Bank of Williamson of Williamson, West Virginia, were both subject to enforcement actions announced by the OCC on 19 December 2024.
Formal agreements are enforceable supervisory tools through which the OCC requires a bank's board of directors and senior management to commit to defined corrective action programmes. They sit below a cease-and-desist order in terms of regulatory severity but are legally binding and publicly disclosed.
DEFICIENCIES CITED
The Fairfield National Bank's formal agreement addresses deficiencies in staffing adequacy, credit underwriting standards, and credit administration practices. The agreement also found that the bank had failed to file correct Call Reports — the quarterly regulatory submissions that national banks are required to submit accurately and on time.
The First National Bank of Williamson's agreement covers staffing, capital planning, strategic planning, interest rate risk management, and audit failures.
CORRECTIVE OBLIGATIONS
Both agreements require the bank boards and senior management to develop and implement comprehensive corrective action plans across the areas identified in the examination findings. The OCC will monitor progress against those plans and retains the authority to escalate enforcement action if remediation is not achieved within timelines it considers adequate.