BROWNING, Mont. - Blackfeet National Bank, the first bank to be started on a Native American reservation, has been ordered by regulators to find a new chief executive officer, add two outside directors to its board, and improve its loan review policies.
The $17.8 million-asset bank agreed to the consent order issued and released Tuesday by the Office of the Comptroller of the Currency. The agency required Blackfeet's board to find a "capable individual who has the technical expertise, experience, integrity, and authority" to be the new CEO.
The board must also elect two independent directors, according to the order. The OCC's assistant deputy comptroller must approve the new CEO and directors.
Beyond staffing changes, the regulator is requiring the 14-year-old bank to revamp its residential and real estate lending practices and its interest rate risk and asset-liability management policies.
The bank, which lost $20,000 in the first quarter, must also do an internal loan review and report to the OCC any problem loan, as well as loans to bank executives, directors, or principal shareholders and the names of officers who originated each such loan.
Blackfeet announced in January that it was selling itself to Native American Bancorp of Denver. The deal is expected to close this year.