Media Statement: 11/24/2023

Statement: FDIC Consent Order

On November 21, First Fed Bank received a consent order from the Federal Deposit Insurance Corporation (FDIC) primarily related to an issue self-reported last year regarding products offered through a single third-party fintech partner, Quin Ventures. In advance of the order, First Fed proactively provided full remediation for all affected customers, ended the Quin partnership in 2022, and continues to bolster internal controls to prevent future issues. These actions are consistent with the consent order. The bank notes that the issue was unrelated to its traditional customers, its core business, or commitment to vigilant financial management.

In line with the First Fed’s own objectives, the order generally calls for the correction of any compliance issues; maintenance of an adequate Compliance Management System, including a written Compliance Program, along with appropriate Board oversight; the maintenance of policies, procedures, training, and resources necessary to support compliance with the consumer protection laws; the non-objection of the FDIC before taking on any new fintech partnerships or offering any new bank products; and the maintenance of an appropriate process to govern the onboarding, monitoring, and auditing of fintech partners and their products.

First Fed’s leadership is committed to strengthening compliance controls and has invested significant resources into resolving the matter, including implementing substantial internal control improvements to prevent any similar future occurrences. First Fed remains in full cooperation with the FDIC surrounding this matter. Our team is dedicated to serving the financial needs of our customers with integrity and excellence.