The Federal Reserve Board assessed a $71,000 penalty this week against Weymouth-based South Shore Bank for violations involving flood insurance.

The Fed said in the enforcement action for South Shore Bank released yesterday that it had found a “pattern or practice of violations” of Regulation H, which implements the National Flood Insurance Act.

The act covers regulated lenders, including banks, providing mortgages in areas that the Federal Emergency Management Agency has designated as flood zones. Banks must comply with regulations involving flood insurance requirements, notifying borrowers about flood insurance and placing amounts paid by the borrower for flood insurance premiums into an escrow account before paying the insurance provider.

South Shore Bank did not admit or deny the allegations in the enforcement action, and the penalty was ordered “solely for the purpose of settlement of this matter without a formal proceeding being filed and without the necessity for protracted litigation or extended hearings,” the enforcement action said.

In a statement to Banker & Tradesman, President and CEO James Dunphy said South Shore Bank has taken the issue seriously, adding that the bank “reacted quickly to issues identified to put sustainable processes in place.”

“South Shore Bank is committed to providing the highest level of service to our clients and has mitigated the flood violations and implemented an enterprise-wide program that includes an internal flood review process,” Dunphy said. “In addition the bank requires all employees to successfully complete ongoing training related to all flood regulations.”

South Shore Bank is a mutual bank with about $1.98 billion in assets and a footprint of 13 full-service branches ranging from Quincy to East Bridgewater.

Once the Fed receives the penalty, the money will be sent to FEMA’s National Flood Mitigation Fund, which provides grants to states and communities to assist with planning and mitigating projects that reduce the risk of flood damage.

Also receiving an enforcement action this week for flood insurance violations was New York-based Dime Community Bank, which was assessed a penalty of $11,000.

Updated 1 p.m., Aug. 13, 2021: This story has been updated to include a statement from South Shore Bank.