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IN THE MATTER OF MAGYAR BANK ) STATE OF NEW JERSEY
) DEPARTMENT OF
NEW BRUNSWICK, NEW JERSEY ) BANKING AND INSURANCE
CONSENT ORDER
TO: MAGYAR BANK
400 Somerset Street
PO Box 1365
New Brunswick, New Jersey 08901
JOSEPH J. LUKACS. JR
Chairman of the Board
400 Somerset Street
PO Box 1365
New Brunswick, New Jersey 08901
BOARD OF DIRECTORS
MAGYAR BANK
Acknowledged:
Magyar Bank, New Brunswick, New Jersey
By:
Andrew G. Hodulik
Thomas Lankey
Joseph J. Lukacs, Jr.
Martin A. Lukacs
Salvatore J. Romano
Edward C. Stokes, III
Joseph A. Yelencsics
WHEREAS, the Commissioner of Banking and Insurance of the State of New
Jersey ("Commissioner") is charged with the responsibility of administering and
enforcing the Banking Act of 1948, N.J.S.A. 17:9A-1 et seq.; and
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WHEREAS, a joint Report of Examination of Magyar Bank was performed by
the New Jersey Department of Banking and Insurance ("DOBI") and the Federal
Deposit Insurance Corporation ("FDIC") commencing on September 21, 2009(1)
("2009 ROE");
WHEREAS, the 2009 ROE was served upon the President and each director
of Magyar Bank on or about March 12, 2010;
WHEREAS, the Commissioner having reviewed and considered the 2009 ROE,
hereby incorporates in this ORDER, each and every finding contained in the 2009
ROE, which findings shall have the same force and effect as if set forth fully
herein;
WHEREAS, the Commissioner and the Bank having agreed to enter into this
Consent Order pursuant to N.J.S.A. 17:9A-267, and the Bank, without admitting or
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denying any charges of unsafe and sound banking practices and violations of law
or regulation, hereby consent to the following provisions;
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(1) Pursuant to N.J.S.A. 17:9A-264 and NJA.C. 3:3-2. (a)(l), every report and
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copy of a report of examination of a bank made by or under the supervision of
the commissioner shall be confidential and shall not be made public.
NOW THEREFORE, IT IS on this 22nd day of April, 2010
ORDERED AND AGREED pursuant to the Commissioner's authority under
N.J.S.A. 17:9A-267, that the Bank shall comply with the following:
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MANAGEMENT
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1. (a) Within 60 days from the effective date of this ORDER, the Bank shall
have and retain qualified management.
(b) At a minimum, such management shall include: a chief executive
officer with proven ability in managing a bank of comparable size and complexity
and experience in upgrading a low quality loan portfolio; a senior lending
officer with an appropriate level of lending, collection, and loan supervision
experience for the type and quality of the Bank's loan portfolio; and a chief
financial officer with demonstrated ability in all financial areas including,
but not limited to, accounting, regulatory reporting, budgeting and planning,
management of the investment function, liquidity management, and interest rate
risk management. The Board shall provide the necessary written authority to
management to implement the provisions of this ORDER.
(c) The qualifications of management shall be assessed on its ability
to:
(i) comply with the requirements of this ORDER;
(ii) operate the Bank in a safe and sound manner;
(iii) comply with applicable laws, rules, and regulations; and
(iv) restore all aspects of the Bank to a safe and sound
condition, including capital adequacy, asset quality, management effectiveness,
earnings, liquidity, and sensitivity to interest rate risk.
BOARD OF DIRECTORS
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2. (a) As of the effective date of this ORDER, the Board shall increase its
participation in the affairs of the Bank, assuming full responsibility for the
approval of sound policies and objectives and for the supervision of all of the
Bank's activities, consistent with the role and expertise commonly expected for
directors of banks of comparable size.
(b) This participation shall include meetings to be held no less
frequently than monthly at which, at a minimum, the following areas shall be
reviewed and approved: reports of income and expenses; new, overdue, renewal,
insider, charged off, and recovered loans; investment activity; liquidity levels
and funds management; adoption or modification of operating policies; individual
committee reports; audit reports; internal control reviews including
management's responses; reconciliation of general ledger accounts; and
compliance with this ORDER. Board minutes shall document these reviews and
approvals, including the names of any dissenting directors.
(c) The Bank shall notify the Commissioner in writing of any additions,
resignations or terminations of any members of its board of directors or any of
its senior executive officers within 15 days of the event. Any notification
required by this subparagraph shall include a description of the background(s)
and experience of any proposed replacement personnel and must be received at
least 30 days prior to the individual(s) assuming the new position(s/ The Bank
shall also establish procedures to ensure compliance with section 32 of the Act,
12 U.S.C. ss. 183li, and Subpart F of Part 303 of the FDIC Rules and
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Regulations, 12 C.F.R. ss. 303.0 et seq.
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REDUCTION OF CLASSIFIED AND SPECIAL MENTION ASSETS
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3. (a) Beginning with the effective date of this ORDER, the Bank shall
charge off from its books and records any loan classified "Loss" in the 2009 ROE
or any future report of examination.
(b) Within 30 days from the effective date of this ORDER, the Bank
shall revise and/or adopt, implement, and adhere to, a realistic and reasonable
written plan to reduce the Bank's risk position in each asset in excess of
$250,000 which is classified "Substandard" or "Doubtful" or listed as Special
Mention in the 2009 ROE. For purposes of this provision, "reduce" means to
collect, charge off, or improve the quality of an asset so as to warrant its
removal from adverse classification.
(c) The plan shall include, but not be limited to, provisions which:
(i) prohibit an extension of credit for the payment of
interest, unless the Board provides, in writing, a detailed explanation of why
the extension is in the best interest of the Bank and how it improves the
position of the Bank, including an appropriate workout plan that has been
developed and will be implemented in conjunction with the additional credit to
be extended. Copies of the statement approved by the Board shall be made a part
of the Board minutes and placed in the appropriate loan file and submitted to
the Commissioner with the quarterly progress reports required pursuant to
paragraph 18 of this ORDER;
(ii) provide for a documented review and analysis of the
current financial condition of each classified and/or Special Mention borrower
and/or guarantor, and a documented review and analysis of the borrower's and/or
guarantor's repayment ability, cash flow and source of repayment, including the
value and accessibility of any pledged or assigned collateral and any possible
actions to improve the Bank's collateral position;
(iii) delineate areas of responsibility for loan officers;
(iv) establish a schedule for addressing and eliminating the
safety and soundness violations pertaining to Special Mention assets cited in
the 2009 ROE;
(v) establish schedules showing, on a quarterly basis, the
consolidated balance of all adversely classified assets and all Special Mention
assets, and the ratio of the consolidated balance of all adversely classified
assets and all Special Mention assets, respectively, to the Bank's projected
Tier 1 capital plus the ALLL; and
(vi) provide for the submission of monthly written progress
reports to the Board for review and notation in minutes of the meetings of the
Board;
(d) The plan required by this provision shall be submitted to the
Commissioner for non-objection upon completion but no later than 30 days from
the effective date of this ORDER. Within 30 days of receipt of any objections
from the Commissioner, and after incorporation and adoption of all objections or
comments, the Board shall approve the plan, which approval shall be recorded in
the minutes of the meeting of the Board, While this ORDER remains in effect, the
plan shall be revised to include assets which become adversely classified after
the effective date of this ORDER or are listed as Special Mention at a
subsequent examination.
(e) The Board shall submit quarterly reports to the Commissioner that
reflect the progress the bank has made in reducing the bank's risk exposure in
each asset in excess of $250,000 classified Substandard or Doubtful or listed
for Special Mention in the 2009 ROE with the quarterly progress reports required
pursuant to paragraph 18 of this Order.
REDUCTION OF DELINQUENCIES AND NON-ACCRUAL ASSETS
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4. (a) Within 30 days from the effective date of this ORDER, the Bank shall
formulate and submit to the Commissioner for review and comment a reasonable and
realistic written plan for the reduction and collection of delinquent and
non-accrual loans. Such plan shall include, but not be limited to, provisions
which:
(i) prohibit the extension of credit for the payment of
interest, unless the Board adopts prior to such extension of credit a detailed
written statement giving reasons why such extension of credit is in the best
interests of the Bank and how it improves the position of the Bank, including an
appropriate workout plan that has been developed and will be implemented in
conjunction with the additional credit to be extended. Copies of the statement
approved by the Board shall be made a part of the Board minutes and placed in
the appropriate loan file and submitted to the Commissioner with the quarterly
progress reports required pursuant to paragraph 18 of this ORDER;
(ii) delineate areas of responsibility for implementing and
monitoring the Bank's collection policies;
(iii) establish specific collection procedures to be
instituted at various stages of a borrower's delinquency;
(iv) establish dollar levels to which the Bank shall reduce
delinquencies and non-accruals within 30 days from the effective date of this
ORDER; and
(v) provide for the submission of monthly written progress
reports to the Board for review and notation in the Board minutes.
(b) For purposes of the plan, "reduce" means to charge-off or collect.
(c) Within 30 days after the Commissioner has responded to the plan,
the Board shall adopt the plan as amended or modified by the Commissioner. The
plan shall be implemented immediately to the extent that the provisions of the
plan are not already in effect at the Bank.
REDUCTION OF COMMERCIAL REAL ESTATE CONCENTRATIONS
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5. (a) Within 60 days from the effective date of this ORDER, the Bank shall
develop and submit a written plan, acceptable to the Commissioner, for
systematically reducing and monitoring the Bank's commercial real estate ("CRE")
loan concentrations of credit identified in the 2009 ROE to an amount which is
commensurate with the Baulks business strategy, management expertise, size, and
location. Such plan shall prohibit any advances that would increase the
concentrations unless the advance is pursuant to an existing loan agreement and
shall include, but not be limited to:
(i) dollar levels and percent of total capital to which the
Bank shall reduce the concentration;
(ii) timeframes for achieving the reduction in dollar levels in
response to (i) above;
(iii) provisions requiring compliance with the Interagency
Guidance on Concentrations in Commercial Real Estate Lending, Sound Risk
Management Practices (FDL-104-2006, issued December 12, 2006) and Managing
Commercial Real Estate Concentrations in a Challenging Environment (FIL-22-2008,
issued March 17, 2008);
(iv) provisions for controlling and monitoring of CRE, including
plans to address the rationale for CRE levels as they relate to growth and
capital targets, segmentation and testing of the CRE portfolio to detect and
limit concentrations with similar risk characteristics; and
(v) provisions for the submission of monthly written progress
reports to the Board for review and notation in minutes of the Board meetings.
(vi) For purposes of the plan, "reduce" means to charge-offer
collect, or increase Tier 1 capital.
(b) The plan required by this provision shall be submitted to the
Commissioner for non-objection. Within 30 days of receipt of any objections from
the Commissioner, and after incorporation and adoption of all objections or
comments, the Board shall approve the plan, which approval shall be recorded in
the minutes of the meeting of the Board. The plan shall be implemented
immediately to the extent that the provisions of the plan are not already in
effect at the Bank.
REDUCTION OF OTHER CONCENTRATION
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6. Within 60 days from the effective date of this ORDER, the Bank shall
develop and submit a written plan, acceptable to the Commissioner, for
systematically reducing and monitoring the Bank's concentration of bank-owned
life insurance ("BOUT) identified in the 2009 ROE to an investment level that is
consistent with the Bank's BOLI Policy, as well as ensuring consistency with the
Interagency Statement on the Purchase and Risk Management of Life Insurance
(FIL-12 7-2004, issued on December 7, 2004).
LOAN ADMINISTRATION
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7. (a) Within 45 days from the effective date of this ORDER, the Bank shall
submit to the Commissioner revised written loan policies and procedures that
have been approved by the Board which shall establish policy guidelines for the
identification and treatment of collateral dependent impaired loans in
conformance with guidance contained in the Financial Accounting Standards Board
Statement Number 114 and Federal Financial Institutions Examination Council's
Instructions for the Reports of Condition and Income and provide for the
implementation of an effective loan review program;
(b) Within 30 days from the effective date of this ORDER, the Bank
shall review all borrower relationships to determine compliance with the Bank's
legal lending limit and take appropriate steps to reduce and monitor the
outstanding balance of any loan that exceeds or is in danger of exceeding the
Bank's legal lending limit; and
(c) Within 45 days from the effective date of this ORDER, the Board
shall develop policies and procedures governing the operations of the Bank's
Small Business Administration lending program.
RESTRICTION ON ADVANCES TO CLASSIFIED BORROWERS
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8. (a) While this ORDER is in effect, the Bank shall not extend, directly
or indirectly, any additional credit to or for the benefit of any borrower whose
existing credit has been classified "Loss," either in whole or in part, in the
2009 ROE, and is uncollected, or to any borrower who is already obligated in any
manner to the Bank on any extension of credit, including any portion thereof,
that has been charged off the books of the Bank and remains uncollected. The
requirements of this paragraph shall not prohibit the Bank from renewing (after
full collection, in cash, of interest due from the borrower) any credit already
extended to the borrower,
(b) While this ORDER is in effect, the Bank shall not extend, directly
or indirectly, any additional credit to or for the benefit of any borrower whose
extension of credit is classified "Doubtful" and/or "Substandard/(3) either in
whole or in part, in the 2009 ROE, and is uncollected, unless the Board has
signed a detailed written statement giving reasons why failure to extend such
credit would be detrimental to the best interests of the Bank and how it
improves the position of the Bank, including an appropriate workout plan that
has been developed and will be implemented in conjunction with the additional
credit to be extended. Copies of the statement shall be placed in the
appropriate loan file and included in the minutes of the applicable meeting of
the Board and submitted to the Commissioner with the quarterly progress reports
required pursuant to paragraph 18 of this ORDER.
CAPITAL
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9. (a) Within 30 days from the effective date of this ORDER, the Board
shall develop a written capital plan ("Capital Plan"), subject to review and
approval of the Commissioner, that details the manner in which the Bank will
achieve a leverage ratio of at least 8% and a total risk-based capital ratio of
at least 12% (as defined in Part 325 of the FDIC's Rules and Regulations, 12
C.F.R. Part 325). At a minimum, the Capital Plan shall include specific
benchmark leverage and total risk-based capital ratios to be achieved at each
calendar quarter end until the full achievement of the required capital levels.
The Bank shall comply with the FDIC's Statement of Policy on Risk-Based Capital
found in Appendix A to Part 325 of the FDIC Rules and Regulations, 12 C.F.R.
Part 325, App. A.
(b) In the event any capital ratio is or falls below the minimum
required by the , approved Capital Plan, the Bank shall immediately notify the
Commissioner and
(i) within 45 days shall increase capital in an amount
sufficient to comply with the ratios as set forth in the approved Capital Plan,
or
(ii) within 45 days submit to the Commissioner a contingency
plan for the sale, merger, or liquidation of the Bank in the event the primary
sources of capital are not available.
(c) The Capital Plan required by this provision shall be submitted to
the Commissioner for non-objection. Within 30 days of receipt of any objections
from the Commissioner, and after incorporation and adoption of all objections or
comments, the Board shall approve the plan, which approval shall be recorded in
the minutes of the meeting of the Board. Thereafter, the Bank shall implement
and fully comply with the Capital Plan.
ALLOWANCE FOR LOAN AND LEASE LOSSES
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10. (a) Within 30 days from the effective date of this ORDER, the Board
shall establish and document an accurate, comprehensive and consistent
methodology for determining its ALLL consistent with sound banking practices and
shall eliminate and/or correct all contraventions of the Interagency Policy
Statement on the Allowance for Loan and Lease Losses (FIL-105-2006, issued
December 13, 2006).
(b) The Bank shall maintain, through charges to current operating
income, an adequate ALLL. The adequacy of the ALLL shall be determined in light
of the volume of criticized loans, the current level of past due and
nonperforming loans, past loan loss experience, evaluation of the potential for
loan losses in the Bank's portfolio, current economic conditions, and any safety
and soundness violations contained in the Bank's most recent report of
examination.
(c) The Bank shall conduct, at a minimum, a quarterly assessment of its
ALLL and shall maintain a written record, for supervisory review, indicating the
methodology used in determining the amount of the ALLL needed and any
deficiencies shall be promptly remedied. The quarterly assessment shall be
reviewed by the Board and shall be recorded in the minutes of the corresponding
Board meeting.
PROFIT AND BUDGET PLAN
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11. (a) Within 60 days from the effective date of this ORDER, and within the
first 30 days of each calendar year thereafter, the Bank shall develop and fully
implement a written profit plan consisting of goals and strategies, consistent
with sound banking practices, and taking into account the Bank's other written
plans, policies, or other actions as required by this ORDER ("Profit Plan").
(b) The Profit Plan shall include, at a minimum:
(i) specific provisions to maintain appropriate allowance for
loan and lease losses;
(ii) realistic and comprehensive budgets for all categories of
income and expense items;
(iii) an executive compensation plan, addressing any and all
salaries, bonuses and other benefits of every kind or nature whatsoever, both
current and deferred, whether paid directly or indirectly, which plan
incorporates qualitative as well as profitability performance standards for the
Bank's Senior Executive Officers;
(iv) a description of the operating assumptions that form the
basis for, and adequately support, material projected revenue and expense
components;
(v) coordination of the Bank's loan, investment, funds
management, and operating policies; strategic plan; and allowance for loan and
lease loss methodology with the profit and budget planning;
(vi) a budget review process to monitor the revenue and
expenses of the Bank whereby actual performance is compared against budgetary
projections not less than quarterly;
(vii) recording the results of the budget review and any
actions taken by the Bank as a result of the budget review in the minutes of the
board of directors; and
(viii) the individuals) responsible for implementing each of
the goals and strategies of the Profit Plan.
(c) The Profit Plan required by this provision shall be submitted to
the Commissioner for non-objection. Within 30 days of receipt of any objections
from the Commissioner, and after incorporation and adoption of all objections or
comments, the Board shall approve the plan, which approval shall be recorded in
the minutes of the meeting of the Board. Thereafter, the Bank shall implement
and fully comply with the Profit Plan.
(d) The copies of the quarterly reports required under paragraph 1
l(b)(vi) shall be submitted to the Commissioner by the 30th day after the end of
the calendar quarter following the effective date of this ORDER and by the 30th
day after the end of every calendar quarter thereafter with the quarterly
progress reports required pursuant to paragraph 18 of this Order.
STRATEGIC PLAN
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12. (a) Within 60 days from the effective date of this ORDER, the Bank shall
formulate adopt, and implement a realistic and comprehensive strategic plan
("Strategic Plan"). The Strategic Plan required by this provision shall contain
an assessment of the Bank*s current financial condition and market area, and a
description of the operating assumptions that form the basis for major projected
income and expense components
(b) The Strategic Plan shall address, at a minimum:
(i) strategies for pricing policies and asset/liability
management; and
(ii) financial goals, including pro forma statements for asset
growth, capital adequacy, and earnings.
(c) The Strategic Plan required by this provision shall be submitted to
the Commissioner for non-objection. Within 30 days of receipt of any objections
from the Commissioner, and after incorporation and adoption of all objections or
comments, the Board shall approve the Strategic Plan, which approval shall be
recorded in the minutes of the meeting of the Board. Thereafter, the Bank shall
implement and fully comply with the Strategic Plan.
LIQUIDITY AND FUNDS MANAGEMENT PLAN
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13. (a) Within 60 days from the effective date of this ORDER, the Bank shall
develop a Liquidity and Funds Management Plan and submit it to the Commissioner
for non-objection. Annually thereafter, while this ORDER is in effect, the Bank
shall review its plan for adequacy and, based upon such review, shall make
necessary revisions to the plan to strengthen funds management procedures and
maintain adequate provisions to meet the Bank's liquidity needs.
(b) The Liquidity and Funds Management Plan shall include, at a minimum,
provisions which:
(i) provide a statement of the Bank's long-term and short-term
liquidity needs and plans for ensuring that such needs are met;
(ii) provide for a periodic review of the Bank's deposit
structure, including the volume and trend of total deposits and the volume and
trend of the various types of deposits offered, the maturity distribution of
time deposits, rates being paid on each type of deposit, rates being paid by
trade area competition, caps on large time deposits, public funds, out-of-area
deposits, and any other information needed;
(iii) establish a reasonable range for its net non-core funding
ratio as computed in the Uniform Bank Performance Report and shall address the
means by which the Bank will seek to reduce its reliance on non-core funding;
(iv) identify the source and use of borrowed and/or volatile
funds;
(v) establish sufficient back-up lines of credit that would
allow the Bank to borrow funds to meet depositor demands if the Bank's other
provisions for liquidity proved to be inadequate;
(vi) require the retention of securities and/or other identified
categories of investments that can be liquidated within one day in amounts
sufficient (as a percentage of the Bank's total assets) to ensure the
maintenance of the Bank's liquidity posture at a level consistent with short-
and long-term liquidity objectives;
(vii) establish a minimum liquidity ratio and defining how the
ratio is to be calculated;
(viii) establish a liquidity contingency plan ("Liquidity
Contingency Plan") that identifies sources of liquid assets to meet the Bank's
contingency funding needs. At a minimum, the Liquidity Contingency Plan shall be
prepared in conformance with the guidance set forth in Liquidity Risk Management
(FIL-84-2008, issued August 26,2008), identifying alternative courses of action
designed to meet the Bank's liquidity needs;
(ix) address the use of borrowings (i.e., seasonal credit needs,
match funding mortgage loans, etc.) and providing for reasonable maturities
commensurate with the use of the borrowed funds; addressing concentration of
funding sources; and addressing pricing and collateral requirements with
specific allowable funding channels (i.e., brokered deposits, internet deposits/
Fed funds purchased and other correspondent borrowings); and
(x) comply with the guidance set forth in Liquidity Risk
Management (FIL-84-2008 issued August 26, 2008).
(c) The Liquidity and Funds Management Plan and the Liquidity
Contingency Plan required by this provision shall be submitted to the
Commissioner for non-objection. Within 30 days of receipt of any objections from
the Commissioner, and after incorporation and adoption of all objections or
comments, the Board shall approve the plans, which approval shall be recorded in
the minutes of the meeting of the Board. Thereafter, the Bank shall implement
and fully comply with the Liquidity and Funds Management Plan and the Liquidity
Contingency Plan.
BROKERED DEPOSITS
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14. (a) Upon the effective date of this ORDER, the Bank shall not solicit,
accept, renew or roll over any "brokered deposits" (as that term is defined in
section 337.6(a)(2) of the FDIC's Rules and Regulations, 12 C.F.R. ss.
337.6(a)(2)), unless the Bank has applied for and been granted a waiver by the
Regional Director of the FDIC's New York Regional Office ("Regional Director")
in accordance with the provisions of section 337.6 of the FDIC's Rules and
Regulations, 12 C.F.R. ss. 337.6.
(b) While this ORDER is in effect, the Bank shall comply with the
restrictions on the effective yield on deposits described in section 337.6 of
the FDIC's Rules and Regulations, 12 C.F.R. ss. 337.6.
RESTRICTION ON DIVIDENDS
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15. Beginning on the effective date of this ORDER, the Bank shall not
declare or pay any dividend without the prior written consent of the
Commissioner.
CORRECTION AND PREVENTION
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16. Beginning on the effective date of this ORDER, the Bank shall take steps
necessary, consistent with other provisions of this ORDER and sound banking
practices, to correct and prevent the unsafe or unsound banking practices and
violations of law and regulations and all contraventions of federal banking
agency policies and procedures and guidelines that were identified in the 2009
ROE. In addition, the Board shall take all steps necessary to ensure that the
Bank is operated with adequate management supervision and Board oversight to
prevent any future unsafe or unsound banking practice or violation of law or
regulation or contravention of federal banking agency policies, procedures and
guidelines.
COMPLIANCE COMMITTEE
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17. Within 30 days from the effective date of this ORDER, the Board shall
establish a committee of the Board members charged with the responsibility of
ensuring that the Bank complies with the provisions of this ORDER. The
Compliance Committee shall be composed of at least 3 Board members who are not
now, and have never been, involved in the daily operations of the bank. The
committee shall report monthly to the full Board, and a copy of the report and
any discussion relating to the report or the ORDER shall be noted in the Board
minutes. The establishment of this committee shall not diminish the
responsibility or liability of the entire Board to ensure compliance with the
provisions of this ORDER.
PROGRESS REPORTS
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18. Within 30 days from the end of each calendar quarter following the effective
date of this ORDER, the Board shall furnish written progress reports to the
Commissioner detailing the form, content, and manner of any actions taken to
secure compliance with this ORDER.
SHAREHOLDERS
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19. After the effective date of this ORDER, the Bank shall send a copy of this
ORDER, or otherwise furnish a description of this ORDER, to its parent holding
company for inclusion with the Bank's next shareholder communication. The
description shall fully describe the ORDER in all material aspects.
OTHER ACTIONS
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20. The Bank shall notify the Commissioner immediately of any material
adverse development affecting the Bank's condition, performance, or outlook.
21. It is expressly and clearly understood that if, at any time, the
Commissioner shall deem it appropriate in fulfilling the responsibilities placed
upon him or her under applicable law to undertake any further action affecting
the Bank, nothing in this ORDER shall in any way inhibit, estop, bar or
otherwise prevent him or her from doing so, including, but not limited to, the
imposition of civil money penalties. 22. It is expressly and clearly understood
that nothing herein shall preclude any proceedings brought by the Commissioner
to enforce the terms of this ORDER, and that nothing herein constitutes, nor
shall the Bank contend that it constitutes, a waiver of any right, power, or
authority of the Regional Director or any other representatives of the United
States or agencies thereof. Department of Justice or any other representatives
of the State of New Jersey or any other agencies thereof, including any
prosecutorial agency, to bring other actions deemed appropriate.
23. Failure to comply with this ORDER may result in imposition of penalties
upon the Bank pursuant to NJ.S.A. 17:9A-268, as well as other administrative
actions pursuant to law. In addition, if a director of the Bank takes an action,
or fails to take an action, that contributes to the Bank's failure to comply
with this ORDER, the director may be subject to penalties as provided by law.
ORDER EFFECTIVE
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24. This agreement may be executed in several counterparts, each of which
shall be deemed an original, and all of such counterparts together shall
constitute one and the same instrument.
25. The provisions of this ORDER shall be binding upon the Bank, its
directors, officers, employees, agents, successors, assigns, and other
institution-affiliated parties of the Bank.
26. Each paragraph of this ORDER shall remain effective and enforceable
until stayed, modified, terminated or suspended by the Commissioner.
27. In the event any paragraph of this Order is ruled to be invalid, illegal
or unenforceable by the decision of any Court of competent jurisdiction, the
validity, legality and enforceability of the remaining paragraphs hereof shall
not in any way be affected or impaired thereby.
28. This ORDER and all terms, provisions and findings incorporated herein,
shall be deemed a final agency action by the New Jersey Department of Banking
and Insurance upon the below, knowing and voluntary signatures of the Directors
of Magyar Bank and upon execution by (he Commissioner.
/s/ Thomas B. Considine
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Thomas B. Considine
Commissioner
Consented to as to both form and substance:
Magyar Bank
/s/ Andrew G. Hodulik
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Andrew G. Hodulik
Director
/s/ Thomas Lankey
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Thomas Lankey
Director
/s/ Joseph J. Lukacs, Jr.
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Joseph J. Lukacs, Jr.
Director
/s/ Martin A. Lukacs
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Martin A. Lukacs
Director
/s/ Salvatore J. Romano
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Salvatore J. Romano
Director
/s/ Edward C. Stokes, III
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Edward C. Stokes, III
Director
/s/ Joseph A. Yelencsics
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Joseph A. Yelencsics
Director
