The move ends more than a year of heightened federal oversight.
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Stamford-based Patriot Bank said the Office of the Comptroller of the Currency has terminated a formal enforcement agreement that had been in place since January 2025, concluding the bank no longer requires the heightened regulatory oversight.
The OCC's June 30 order states that "the safety and soundness of the Bank and its compliance with the laws and regulations does not require the continued existence" of the agreement.
The agreement stemmed from years of financial and regulatory challenges at Patriot, which the OCC had designated as being in "troubled condition" for a second time in early 2025. The bank subsequently recapitalized, installed a new management team led by President and CEO Steven Sugarman and began shifting its strategy away from traditional community banking toward serving high-net-worth clients and financial technology firms.
In a letter to shareholders Wednesday, Sugarman said Patriot spent more than $5 million since early 2025 addressing regulatory deficiencies through consultants, auditors, advisers and additional staffing.
He said ending the agreement is expected to reduce regulatory and compliance costs, lower Federal Deposit Insurance Corp. assessments, improve access to wholesale funding and restore the bank's access to the Federal Reserve's primary credit window.
Patriot also said its total assets have increased from $1.1 billion at the start of 2026 to $1.3 billion, with new loan originations exceeding $40 million per month. The bank recently opened a Beverly Hills, California, office and expanded its relationship banking platform into Greenwich and Palm Beach, Florida, as it pursues growth among wealthy clients.
