Three holding companies in New Jersey that control the Resolute Bank in Maumee, Ohio, entered into a consent order April 4 with the Federal Reserve Bank of Philadelphia that require them to take steps to serve as a source of strength for the federal savings bank, including steps to ensure the bank complies with a consent order entered into Oct. 3, 2012, with the Office of the Comptroller of the Currency (OCC).
According to the Federal Deposit Insurance Corp. (FDIC), the $26.3 million bank lost $2.5 million (negative net earnings) in 2018, with return on assets of -7.9%
The order, released Tuesday by the Federal Reserve Board, shows that Princeton Capital Holdings LLC, Princeton Capital LLC, and PrinCap Holdings One LLC, all of Ewing, N.J., are registered savings and loan holding companies that own and control Resolute Bank, a federal savings bank that had $26.3 million in assets as of March 31 (based on data from the Federal Deposit Insurance Corp.).
In entering into the order, the companies acknowledge:
- the need to preserve their assets to meet any near-term capital demands by Resolute Bank;
- that asset restrictions requiring each company’s assets in the form of cash or cash equivalents are necessary in order to meet near term capital demands by the savings bank; and
- that asset restrictions requiring the companies to obtain the prior written approval of the Reserve Bank for any reduction to a company’s assets to pay operating costs outside of the ordinary course of business are necessary to preserve the companies’ assets.
The consent order requires the companies to address their own internal controls, regulatory reporting, policies on conflicts of interest, and it limits distributions to members.
Federal Reserve Board issues enforcement action with Princeton Capital Holdings LLC, Princeton Capital LLC, and Princap Holdings One LLC