Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn 2025 Carolinas Bank Directors and Executives Summit The 2025 Carolinas Bank Directors and Executive Summit was a “Who’s Who” of banking in North and South Carolina. The event took place from March 3-4 in Charlotte, NC. The summit was hosted by the North Carolina Bankers Association, the North Carolina Commissioner of Banks, the South Carolina Bankers Association, and the South Carolina Commissioner of Banking.  Upcoming Professional Development Events: CBS Benefits Day & HR Workshop - March 25-26 Regulation E and Payments - April 10-11 Credit Analyst Development Program - April 14 - June 13 Upcoming Annual Conferences: 2025 American Mortgage Conference - May 13-14 2025 NCBA/OBL Annual Convention - June 23-26 2025 North Carolina School of Banking - July 21-25 More than 170 of the industry’s senior leaders gathered to acquire additional strategic acumen and new competitive advantages, while staying informed on the latest legislative regulations and achieving greater awareness of emerging trends. Among the subject matter experts leading the learning were Katie Bosken, NC Commissioner of Banks, Kathy Bickham, SC Commissioner of Banking, as well as executives from the FDIC and Federal Reserve Bank. Experts also facilitated interactive sessions on interest rate risk, why succession planning is critical, dealing with Board and C-suite dynamics, and uncovering the connections between Innovation, AI and Fraud. Thank you to all who participated in making this year’s summit a success, and thank you to the NCBA and SCBA sponsors for making this possible: Earn Professional Credits at the 2025 American Mortgage Conference! | May 13-14 Join us May 13-14, 2025, at the Francis Marion Hotel for the American Mortgage Conference. This year's event offers the unique opportunity to earn CRCM, CERP, CFMP, and CPE credits while immersed in the rich history and vibrant culture of downtown Charleston, S.C. Network with industry leaders, gain insights into key mortgage issues, and enjoy all that this iconic city has to offer. Early bird registration is available through April 22, so sign up today to catch the discounted rates! Sign Up & Learn More   State Legislative & Regulatory Update Bill Filings at the General Assembly The NCBA is now lobbying on or actively following 17 bills at the North Carolina General Assembly. On Tuesday, Rep. Jeff Zenger (R-Forsyth) filed H 264, the Wire Fraud Prevention Act. As the name suggests, the sponsor’s goal is to reduce the incidence of wire fraud, which we respect. However, the bill begins by proposing that a new requirement be added to North Carolina’s version of the Uniform Commercial Code: “A security procedure shall require the receiving bank to verbally verify (emphasis added) the payment order or communication with the customer and, if the receiving bank is the beneficiary's bank, the beneficiary.” This would likely have the unintended effect of causing financial institutions to cease offering wires through online or mobile banking. The bill also makes additional changes to the UCC and addresses refunds and funds availability in ways that appear contrary to controlling federal law. Please see the attached Bill Tracker for links to this bill and the other bills we are monitoring. New Dashboard on Hurricane Helene Recovery Efforts The Governor’s Recovery Office for Western North Carolina (GROW NC) has launched a new public dashboard at wncrecovery.nc.gov. The newly released website features updates, resources, and information detailing progress of Helene recovery efforts, including rebuilding safe housing, restoring infrastructure, and revitalizing the economy.   Watch this short video for an update on Hurricane Helene relief efforts. Senate President Pro Tem Phil Berger Outlines Priorities Senate leader Phil Berger (R-Guilford, Rockingham) noted in a new interview with The Carolina Journal publication that his preference is to end the legislative session in mid-June if at all possible.  “My priority, and I think the priority of Senate Republicans, will be to continue those policies that have provided that kind of environment that has made North Carolina attractive to private sector businesses, private sector job growth, and individuals making a decision as to where they want to live, to work, and to raise their families, and decisions made by business owners as to where they want their businesses to be located,” Berger said. “We currently are the ninth most populous state,” Berger stated. “We recently, by estimates, passed 11 million citizens in North Carolina, and we are growing faster than the states that are ahead of us in positions eight and seven, and we very well, when the next census comes out, [could] be the seventh most populous state.”  He highlighted the work of the General Assembly over the past decade and a half to replace the progressive tax structure with a flat tax, and noted the rate is scheduled to drop further over the next year. The corporate income tax rate fell to 2.25 percent on January 1, 2025, and under NC General Statute 105-130.3, the rate is scheduled to be further reduced and eliminated by 2030.  Federal Legislative & Regulatory Update FDIC Withdraws Proposed Rules The FDIC has withdrawn three proposed rules relating to brokered deposits, corporate governance, and the Change in Bank Control Act (CBCA). The FDIC is also withdrawing authority for staff to publish in the Federal Register a proposed rule related to incentive-based compensation arrangements.  Congressman Davis Introduces ACRE Act A group of lawmakers have reintroduced the Access to Credit for our Rural Economy Act, which would make it easier for farmers, ranchers and rural families to access affordable real estate credit. The lead Democratic co-sponsor of the bipartisan bill in the House is Rep. Don Davis. The ACRE Act would give community banks the same tax-exempt status on certain earned interest that applies to farm credit institutions, allowing farm real estate borrowers and rural homeowners access to lower interest rates.  The exemption would also apply to single-family home mortgage loans in rural communities with fewer than 2,500 residents and for mortgages less than $750,000. Hearing Held on McKernan’s Nomination to Be CFPB Director At a Senate Banking Committee hearing on his nomination, former FDIC Director Jonathan McKernan expressed concerns about the CFPB’s approach, saying consumer protection is critical, but too often the CFPB has “gotten in the way of its own mission.”  “It has seized opportunities to expand its jurisdiction and power. It has offended our basic notions of fairness and due process when it has regulated by enforcement," he added.  "And it has harmed consumers through higher prices and reduced choice when it has failed to strike an appropriate balance between costs and benefits in prescribing new regulations.” Committee Ranking Member Elizabeth Warren (D-Mass.), questioned whether the Trump administration’s actions made McKernan “the number one horse at the glue factory.” McKernan explained that his goal was to follow the law. “I take that very seriously as a former congressional staffer. I’m an Article I guy. I’m going to make sure the CFPB performs each of its statutorily assigned functions.” BOI Enforcement Suspended for U.S. companies  The Treasury Department has announced that it will not enforce any penalties or fines against U.S. companies for failing to report beneficial ownership information as required by the Corporate Transparency Act.  The Treasury Department will be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury’s statement followed an earlier announcement by FinCEN. FDIC Delays Signage Requirements The FDIC has extended the compliance date from May 1, 2025, to March 1, 2026, for the requirements related to the display of the FDIC official digital sign on an insured depository institution’s (IDI’s) digital channels, as well as analogous requirements related to IDI’s automated teller machines (ATMs) and like devices. Warning About Relationship Scams FinCEN has issued a statement calling on financial institutions to remain vigilant regarding suspicious activity that may be indicative of relationship investment scams. The warning includes resources to help stakeholders identify and report illicit financial activity that may be indicative of relationship investment scams and other types of romance and confidence scams. Combatting Money Laundering FinCEN has announced updates to the lists of jurisdictions with strategic deficiencies in countering anti-money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction. Laos and Nepal have been added to the list of Jurisdictions Under Increased Monitoring, while the Philippines has been removed. FDIC Stance on Bank Merger Applications The FDIC board has approved a proposal to rescind a 2024 statement on bank mergers that expanded the factors taken under consideration when the agency reviews merger applications.  CFPB Drops Lawsuit Against Zelle The CFPB has dismissed its lawsuit against Zelle and several participating banks for allegedly failing to take steps to protect consumers from fraud on the payments network.  Expert Insights "Pig Butchering" Scams are Targeting Bank Customers From BankMarketingCenter.com In January of 2024, an employee at a Hong Kong-based firm unwittingly sent $25 million to fraudsters after being instructed to do so by her chief financial officer on a video call that also included other colleagues. It turned out, however, that her colleagues weren’t really on the call. Fraudsters had created a deepfake that replicated their likenesses to trick her into sending the money. The Frightening Rise in Authorized Fraud In the banking space, fraud is categorized into two primary types: unauthorized fraud and authorized fraud. Understanding the distinction between these is crucial for both consumers and financial institutions in managing risks and responsibilities. Unauthorized Fraud occurs when a transaction is made without the account holder's consent or knowledge. This typically involves a third party gaining illicit access to an individual's account through methods such as hacking, phishing, or identity theft. For example, if a fraudster obtains a customer’s bank account details and initiates a payment without their permission, this constitutes unauthorized fraud. Two of the most prevalent forms of unauthorized fraud are Synthetic Identity Fraud, where fraudsters create fictitious identities by combining real and fabricated information, and Account Takeover (ATO), where fraudsters gain access to a customer’s account through a method such as phishing in order to steal that individual’s identity. Authorized Fraud, also known as authorized push payment (APP) fraud, on the other hand, involves transactions where the account holder knowingly initiates the payment, but is deceived into doing so by a fraudster. The rise of push payments, also known as “fast payments” or “real-time payments”—thanks to the prevalence of online and mobile banking—has made this form of fraud the tactic of choice for bad actors. Why? Once a fast payment transaction is completed, with the funds reaching the recipient, the transaction cannot be reversed and the funds, irretrievable. Read More ▶   NCBA Announcements Now Accepting Applications for the 2025 NCBA Foundation Scholarship The North Carolina Bankers Association Foundation is now accepting scholarship applications from high school seniors with a parent who is a full-time employee of an NCBA member bank. Two $16,000 scholarships will be awarded during this year’s application cycle.  Each applicant must be a current high school senior who will receive their diploma during the 2024-25 school year.  Scholarship guidelines and application instructions are available online. The deadline for uploading applications and supporting documentation is Friday, March 21.  For more information contact John Sullivan at johns@ncbankers.org.    Go Beyond Prompts with Paul Carney at CBS Benefits Day & HR Workshop | March 25-26 How can human resources professionals use predictive analytics to drive results? Learn how to leverage AI for efficiency, training, and strategic decision-making in this session with innovation expert Paul Carney, Carter Bank & Trust, at the 2025 CBS Benefits Day & HR Workshop. This two day event is a prime opportunity to learn more about the options available to your employees through Community Bank Services and focus on human resources management with your peers. Don't miss this annual tradition! Sign Up & Learn More   Save the Date for the 2025 NC School of Banking! | July 21-25 Save the date for the state's premier state association banking school, the North Carolina School of Banking. Students can expect to spend a full week learning the ins-and-outs of banking from a faculty made up of industry leaders and experts in their fields. Mark your calendars and prepare to join us in Boone on July 21-25, 2025! Learn More   Professional Development Training with our Partnered Providers Preparing for Reg CC Changes- March 7 IRA Beneficiary Payout Options: The New Rules and When They Take Effect- March 13 New Account Fraud Prevention- March 18 2025 Call Report Update: All-Day Streaming- March 20 - 6 CPE Credits Tax Returns and Personal Financial Statements- March 25 - 1 CPE Credit Basic Bankruptcy 101- March 26 Need credits? Earn SHRM, AAP, APRP, CRCM, CPE and more with our partnered webinars! CBS Spotlight Keep Large-Dollar Deposit Relationships Where They Belong—At Your Bank. Banks of all sizes use ICS® and CDARS®, trusted deposit services from IntraFi®, to offer customers access to millions in aggregate FDIC insurance across IntraFi network banks. Note: A list identifying IntraFi network banks can be found at IntraFi.com/network-banks. IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. ICS and CDARS are simple to onboard and introduce, and depositors are quick to appreciate their benefits. Security—no one has ever lost a penny of FDIC-insured deposits Returns, at a rate set by your bank Flexibility, with various liquidity options The convenience of working directly with just your bank Transparent reporting And don't forget, ICS and CDARS are not just deposit growth tools. Their services also offer liquidity management benefits and they are one of the largest providers of wholesale funding in the nation. Industry Update F.N.B Corporation Recognized as a Best Bank in Commercial Banking Client Experience F.N.B. Corporation (NYSE: FNB) announced that it again has been named a Best Bank Awards winner by Crisil Coalition Greenwich, highlighting its strength in providing exceptional service to small and middle market business clients. In 14 consecutive years of recognition, FNB has now garnered more than 115 awards from the global, insights-driven analytics company at both the national and regional level. According to Crisil Coalition Greenwich, honorees of the 2025 Best Bank Awards (formerly Greenwich Excellence and Best Brand Awards) were differentiated by their ability to combine high-quality day-to-day service, innovative digital banking tools and insights that help optimize business performance. "FNB's high-caliber team and continual investments in products, services and technology result in a superior commercial banking experience for our clients," said Vincent J. Delie, Jr., Chairman, President and Chief Executive Officer of F.N.B. Corporation and First National Bank. "The multiple awards received from Crisil Coalition Greenwich are a testament to FNB's position as one of the nation's premier commercial banks." Words of Wisdom Kindness in words creates confidence. Kindness in thinking creates profoundness. Kindness in giving creates love. - Lao Tzu NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.