Bangor Savings fined for violating federal flood act

BANGOR – Bangor Savings Bank has consented to pay a $22,715 fine to the Federal Deposit Insurance Corp. related to violations of the Flood Disaster Protection Act.

The FDIC announced Tuesday that Bangor Savings Bank agreed on June 27 to pay the fine “without admitting or denying any violations.”

While the FDIC is not pursuing legal action against Bangor Savings Bank, the FDIC said in a legal order it “has reason to believe that Bangor Savings Bank violated the flood act” by failing to ensure that several of its flood zone properties had flood insurance.

In a regular compliance review, the FDIC accused Bangor Savings Bank of failing to secure or maintain adequate flood insurance coverage on 69 properties that carry Bangor Savings Bank loans. The bank also was faulted for failing to maintain a record of having notified 25 properties of their need for flood insurance.

None of the properties has experienced any flooding, according to Bangor Savings Bank senior vice president Yellow Light Breen.

“We undertook an internal review to find all the problems that could be there, correct all the problems and certainly confirm that there was no impact on the customers. As a result the fine from the FDIC was far less than they could have fined us and we’ve taken all necessary steps to keep similar problems from arising in the future,” Breen said.