There are few events in the life of a bank that are more important than a safety and soundness examination by the institution’s primary regulator. A passing grade means the bank will be able to execute its growth strategy, including acquisitions, product development and business expansion, with little interruption or objection from their regulator. Not only does a failing grade mean that bank’s major growth initiatives will probably be put on hold, but its management team will have to spend both time and money fixing the deficiencies—resources that otherwise would be spent on more productive pursuits. Gary Bronstein, a Washington,...