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| FDIC Reports Quarterly Bank Performance Data |
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| | Banks earned $70.8 billion in the second quarter of 2023, a decline of $9 billion from the first quarter, according to the FDIC’s Quarterly Banking Profile. Deposit outflows moderated substantially. | | The Deposit Insurance Fund balance was $117 billion on June 30, up approximately $900 million from the end of the Q1. An increase in credit card balances and loans to nondepository institutions offset declines in commercial and industrial and auto lending. | | The industry reported annual loan growth of 4.5% from the previous year. |
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| | FDIC Website for Consumer Compliance and CRA Exam Activities |
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| | The FDIC is launching a new Banker Engagement Site (BES) through its FDICconnect web portal. The site will allow a bank’s authorized staff to communicate with FDIC examination staff and respond to information and document requests made during the supervisory process. | | The FDIC’s existing tool to exchange examination information, the Enterprise File Exchange, will continue to be used in |
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| | instances where the pre-planning for consumer compliance and CRA activity was initiated before the availability of BES and also may be used in some additional circumstances. |
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| | This NCBankers Bulletin is sponsored by: |
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| | Help NC Small Businesses with Capital Opportunities |
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| | | Small businesses continue to make important contributions to our national economy. Within the United States, small businesses, represent more than 99.7% of all employers, employ almost half of all private sector employees, and account for 39.7% of the total U.S. private sector payroll. In addition, small businesses are significant generators of new jobs. | | Despite the huge impact small businesses have on our economy, financing a startup or securing capital for an innovative business or funding a growing one remain one of the top 3 challenges that small businesses face. | | At capitalopportunitiesnc.org, you will find critical information on understanding the different types of financing and funding available to small businesses, instructions, and guidelines on preparing to seek out funding and a searchable database of funding/financing resource. Beyond these resources, we encourage our members to reach out to one of the SBTDC business counselors for further information and tactics in approaching various funding sources. |
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| Federal Legislative & Regulatory Update |
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| Labor Department Releases Overtime Proposed Rule |
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| | The U.S. Department of Labor has released a proposed rule that would significantly increase the number of employees who are subject to the Fair Labor Standards Act’s overtime and minimum wage requirements. Employees who earn up to $1,059 per week, or $55,068 annually, would automatically be subject to these requirements. Above that level, an employee may be exempted from federal overtime and minimum wage requirements if the employee performs certain duties. |
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| | The proposal would increase to $143,988 the amount of income an employee must receive to be classified as a highly compensated employee (HCE) and thereby subject to a less stringent duties test. DOL would automatically update the thresholds every three years. The comment period closes on November 7, 2023. |
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| Judge Vacates CFPB Exam Manual Update |
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| | A judge for the U.S. District Court for the Eastern District of Texas has issued a judgment that sets aside the CFPB’s March 2022 update to its examination manual for evaluating unfair, deceptive, and abusive acts and practices. The judge ruled that Congress did not authorize the bureau to monitor for discrimination beyond those areas specified in statute. |
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| FHFA to Expand Public Engagement on Proposed Credit Score Modernization Effort |
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| | The FHFA will provide additional opportunities for public engagement, including stakeholder forums and listening sessions, on its plans to update the credit score process for loans acquired by Fannie Mae and Freddie Mac. Under the proposal, Fannie Mae and Freddie Mac would replace the current FICO credit score model with the FICO 10T and the VantageScore 4.0 credit score models, and transition from requiring three credit reports to two for single-family loans. |
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| | The implementation date will occur later than the first quarter of 2024, as was initially proposed. |
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| FinCEN Issues Alert on Crypto Scam |
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| | FinCEN has issued an alert for financial institutions and the broader public on a virtual currency investment scam known as “pig butchering.” In the scams, bad actors use fake identities to build personal relationships with victims they call “pigs” so they can steal their assets. |
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| FDIC Report on First Republic Bank Failure |
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| | In a new report, the FDIC concluded that meaningful action to mitigate interest rate risk and address funding concentrations would have made First Republic Bank less vulnerable to the contagion event that began with the failure of Silicon Valley Bank, but the FDIC said there is no clear answer as to whether earlier supervisory action would have prevented it from failing given the significance and speed of deposit withdrawals. The authors had recommendations for areas of further study, including evaluating whether continuous examination process teams should place greater consideration and emphasis on unrealized losses and declines in fair value, and exploring potential processes and information sources for real-time monitoring of large bank reputational risk profiles. |
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| Senate Confirms Federal Reserve Board Nominees |
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| | The Senate has confirmed Philip Jefferson as vice chair of the Federal Reserve board, as well as Lisa Cook for a full term and Adriana Kugler to fill an unexpired term. Jefferson joined the Fed board in 2022 to fill an unexpired term ending in 2036. Jefferson has a connection to North Carolina as he most recently was VP for academic affairs and dean of faculty and the Paul B. Freeland Professor of Economics at Davidson College. He will serve a four-year term as vice chairman. |
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| Bidding Opens for Signature Bank CRE Loan Portfolio |
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| | The FDIC has started the marketing process for the approximately $33 billion commercial real estate loan portfolio retained in receivership following the failure of Signature Bank in March. Most of the portfolio is comprised of multifamily properties, primarily located in New York City, with approximately $15 billion of the loans secured by multifamily residences that are rent-stabilized or rent-controlled. |
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| Advice on Preventing Elder Fraud |
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| | The September edition of FDIC Consumer News provides advice for consumers on how to spot and prevent elder financial abuse. The newsletter provides tips on choosing a financial adviser, appointing a representative for powers of attorney, and protecting personal information. It also provides advice on avoiding common scams targeting the elderly. |
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| Challenge to Proposed Capital Requirements |
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| | In a letter to bank regulators, a group of national trade associations argue the proposed new capital requirements for banks with more than $100 billion in assets violate the Administrative Procedure Act, which requires agencies to publicly disclose the data and analyses on which their rulemaking is based. | | They also criticized the agencies’ plans to collect additional data “to refine estimates of the rule’s effects,” noting the purpose of the comment period is for the public to review the agency’s proposal, including any supporting evidence, and not for the agencies to finish doing work that should have already been completed. They called upon the agencies to suspend the rulemaking. |
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| Equal Housing Lender Posters |
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| | The FDIC has amended details of the Equal Housing Lender posters that need to be displayed in branches. Changes include updating the name of the office to which complaints should be addressed, as well as adding the web address of the FDIC’s web-based complaint portal. Compliant posters are available through the FDIC online catalog at FDICconnect. |
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| CFPB Releases HMDA Disclosure Instructions |
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| | The CFPB has announced that the filing instructions guide for Home Mortgage Disclosure Act data collected in 2024 is now available. The bureau also released the Supplemental Guide for Quarterly Filers for 2024, which includes 2024 calendar year quarterly deadlines. |
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| State Legislative & Regulatory Update |
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| | The NC House and Senate planned to reveal the proposed state budget this week and quickly vote upon it. That plan completely fell apart. House Speaker Tim Moore and Senate leader Phil Berger have differing beliefs about whether a plan to include authorization for casinos was part of the deal. | | “From the House, we’re ready to move forward with a budget, that does not include gaming,” Moore said. |
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| | Meanwhile, Berger said House Republicans should keep an agreement already made on the budget that would include legalizing nontribal casinos. However, Moore said there aren’t enough House Republicans and Democrats who would vote for the budget if the casino provision is included. | | Berger countered that if the House doesn’t include that provision, then other aspects of the budget also have to be renegotiated. Legislators hoped to have a new state budget in place by the start of the fiscal year on July 1 and then adjourn. The latest issues mean that adjournment of the 2023 session is now even further delayed. |
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| Lessons in Leadership | NC Emerging Leaders Conference: Nov. 5-7, 2023 |
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| | | North Carolina is home to some of the top banking talent in the country, and the 2023 NC Emerging Leaders Conference is your opportunity to benefit from their collective wisdom! Join us for this year's leadership panel to hear from Charles Frederick (TD Bank), John Kimberly (Park National Bank), and Kristin Powell (HomeTrust Bank) as the trio discuss their trials, tribulations and successes on the path to becoming industry leaders. | | Don't miss this year's NC Emerging Leaders Conference! The 2023 event will take place on November 5-7 at The Asheville Renaissance. Join us in the mountains as we gather to learn, relax and reconnect among the beautiful Appalachians. We hope to see you there! |
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| | Building Trust with Trustworthy AI | Fusion Forum: Oct. 3-4, 2023 |
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| | | Artificial intelligence is transforming the financial services industry with enhanced efficiency, personalization, and security, but AI can introduce additional risks to an organization if it is not developed responsibly. How can you harness the promise of AI while proactively mitigating risks, promoting human agency and preventing human harms? Join Kristi Boyd (SAS Data Ethics Practice) at the 2023 Fusion Forum to find out. | | The 2023 Fusion Forum will bring together CEOs, CFOs, Credit Officers, Security Officers, COOs, CAOs, HR and those that support these role for the chance to learn from a variety of top speakers and leading experts. This event will have something for everyone on your management team! |
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| | Save the Date! | Bank Directors Assembly: March 4-5, 2024 |
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| | | Bank directors and their management teams must be well-informed on industry trends in order to contribute to the success of the bank. Save the date for the 2024 Bank Directors Assembly on March 4-5, 2024, and stay competitive in the ever-evolving world of banking! |
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| | Thank You to our Conference Sponsors! |
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| Professional Development Opportunities |
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| | Online Training with Our Partnered Webinar Providers |
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| | Finding the time for crucial professional development can be a challenge. Luckily, NCBA members have access to online training material through our friends at ABA Training and OnCourse Learning. |
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| | All AIB courses, certificates, diplomas and more are now part of ABA Training and are brought to you through your Local ABA Training Provider, the NCBA. |
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| | View upcoming September webinars from OnCourse Learning below, or click here to access the full calendar. |
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- Maximizing Utilization of the SBA 7(a) Loan Guaranty Program and The Outsourcing Solution (September 12, 2023)
Audience: Senior Management, Commercial Lenders and Support Staff - Avoiding Check Fraud Liability: From Prevention to Loss Allocation (September 19, 2023)
Audience: Tellers, Teller Supervisors, Customer Service Representatives, New Accounts Personnel, Branch Managers, Security Officers, Fraud Investigators, Fraud Examiners, and Bank Attorneys will benefit from this webinar. - Beneficial Ownership Customer Game Plan—An Action Plan for Your Business Customers (September 28, 2023)
Audience: BSA Officer, Compliance Officer, Marketing Officer, Business Development Officers, Commercial Lending staff will all benefit. - Escrow Accounts A to Z (September 28, 2023)
Audience: This webinar is designed for consumer real estate loan officers, loan processors, compliance, audit and other loan operations personnel that handle escrow accounts.
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| | | Welcome to the Only Compliance Support You Need: Compliance Alliance |
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| | From small town banks to big city locations —and everything in between — Compliance Alliance knows one size does not fit all. | | Designed specifically to mirror the way regulations crisscross through bank functions and departments, C/A has built a reputation for protecting banks and their customers. They do this with top-tier educational training, quick-connect expert support, and tools that walk you through the scenarios and challenges you’ll face. |
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| | Let Compliance Alliance prove that they are the guide you need when you schedule a demo with their team at (833) 683-0701 or info@bankersalliance.org. |
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| JPMorgan Chase Opens First Triad branch in Greensboro |
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| JPMorgan Chase & Co. has opened its first Triad branch at 435 Pisgah Church Road in Greensboro. The financial institution gained permission on December 16 to open a branch at the intersection of North Elm Street and Pisgah Church Road, and the branch officially opened on August 29.
On August 11, the regulatory agency also gave permission for a proposed second Greensboro branch in the southwest corner of the intersection of Jefferson and New Garden roads. JPMorgan announced in August 2019 plans to open at least 40 branches in North Carolina within three years. |
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| I have six locks on my door all in a row.
When I go out, I lock every other one. I figure no matter how long somebody stands there picking the locks,
they are always locking three. |
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