Risk Management Manual of Examination Policies - FDIC

INVESTIGATION REPORT CONCLUSIONS AND RECOMMENDATIONS (Continued)
General Character of Management
The general character of the proposed management team appears fundamentally sound and consistent with a rating of “2” under the
Uniform Financial Institutions Rating System. Proposed management’s aversion for risk is suggested by the concentration of less
risky residential real estate during the formative years. While the finding on this factor is favorable, one open supervisory item
remains pending. To date, the Applicant has not submitted any stock benefit plans/agreements on its executive officers or directors.
In light of exceptions taken during the prior proposal on the extent of option grants to certain executive officers, appropriate due
diligence should be accorded prior to chartering.
Risk to the Fund
The proposal does not appear to present any undue risk to the insurance fund. This determination is based on the business model’s
strong initial capitalization base, seemingly conservative management team and investment philosophy, as well as, the viable and
multi-faceted branch network strategy. The finding on this factor is favorable.
Convenience and Needs of the Community
Given the extent of competition and available market share, the Applicant would not adversely impact
competition or the delivery of financial services within the market area. The finding on this factor is favorable.
Consistency of Corporate Powers
The finding on this factor is favorable.
Recommendation
The Examiner has concluded that all seven statutory factors have been favorably resolved. However, three open supervisory items
remain and should be satisfactorily addressed prior to chartering.
FDIC 6510/10 (02-2002) 2
Examiner