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| McHenry to Leave Congress after 2024 Term Completed |
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| | House Financial Services Chairman Patrick McHenry will not seek re-election in 2024. He plans to finish out his two-year term. He said in a statement: "I believe there is a season for everything and—for me—this season has come to an end. I look forward to what comes next for my family and me." McHenry did not reveal his future plans at this time. | | “Congressman McHenry has been an extraordinary leader and representative of the state of North Carolina during his tenure in Congress, including most recently as chairman of the House Committee on Financial Services and the historic position of Interim Speaker of the House,” said Peter Gwaltney, NCBA President & CEO. “We all owe him a debt of gratitude for his service and the many sacrifices he and his family have made during his time in Congress.” |
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| McHenry would have been term-limited by House GOP Conference Rules, which provide that no individual shall serve more than three consecutive terms as chair or ranking member of a standing, select, joint, or ad hoc committee or subcommittee. |
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| | Federal Legislative & Regulatory Update |
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| FDIC Quarterly Banking Profile |
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| | Banks earned $68.4 billion in the third quarter of 2023, a decline of $2.4 billion from the second quarter, according to the FDIC’s Quarterly Banking Profile. Net income for the past four quarters has been relatively flat after excluding the one-time gains from the accounting treatment of the Silicon Valley Bank, Signature Bank and First Republic Bank failures and acquisitions earlier this year. |
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| Bank Board Governance Guidelines |
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| | The FDIC has extended the comment period from Dec. 11 to Feb. 9, 2024, for its proposed corporate governance guidelines primarily focused on financial institutions with at least $10 billion in assets. The guidelines would describe the general obligations of a bank’s board and individual board members as well as state that the board should establish an effective risk management program. | | As many of you are already aware, there is an important caveat in the proposed guidelines in that the FDIC expressly reserves the authority to apply the proposed Guidelines, in whole or in part, to institutions with less than $10 billion in total consolidated assets “if the FDIC determines that the institution’s operations are highly complex or present heightened risk.” |
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| Manning Casts Key Vote on CFPB’s 1071 Rule |
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| | The House has voted 221-202 to pass a Senate joint resolution (S.J. Res. 32) to overturn the CFPB's final rule implementing Section 1071 of the Dodd-Frank Act. The vote broke mostly on party lines, with Republicans in the NC delegation voting in favor of overturning the rule, and Democrats in the NC delegation generally voting against. A key exception was Rep. Kathy Manning, who along with just 5 other Democrats nationally, voted in favor of the resolution. |
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| | Section 1071 requires the collection and reporting of credit application data for small businesses. Although the banking industry supports the goals of Section 1071, the rule as written is far too broad and will, among its unintended consequences, almost certainly have the net effect of discouraging bank lending to small businesses given the costs to collect a mountain of new data. When the resolution was before the Senate previously, both Senators Budd and Tillis voted in favor. Unfortunately, the White House has stated that President Biden intends to veto the legislation. |
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| CFPB Late Fee Proposal Draws Further Criticism |
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| | A CFPB proposal to lower the safe harbor dollar amount for credit card late fees to $8 would have significant ramifications for low-income families in North Carolina, especially those of color, Lisa Cole Martin, an adjunct professor in the family financial planning program at North Carolina A&T State University, wrote in a new op-ed for The Charlotte Observer and which has also been picked up nationally on other news sites. Martin said that while the CFPB's intention is to protect vulnerable families, the proposed rule could lead to reduced access to credit and higher interest rates for those same families, exacerbating their existing financial challenges. She also noted, “In our state, many small financial institutions that provide loans and credit may struggle to sustain themselves under the price cap.” |
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| | Meanwhile, CFPB Director Rohit Chopra appeared recently before the House Financial Services Committee during which he fielded questions from lawmakers skeptical of the proposed rulemaking. | | “The CFPB credit card late fee proposed rule attempts to help a small number of credit card customers at the expense of a vast majority of other cardholders who never pay late, which the CFPB’s own data and report indicates is 74% of all Americans with credit cards will not benefit from reduced fees,” Rep. Ann Wagner (R-Mo.) said. “And according to the proposed rule, they could experience, and I quote, ‘higher maintenance fees and lower rewards.’” |
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| Discount Window Preparedness |
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| | In a new speech, Federal Reserve Vice Chairman for Supervision Michael Barr said it may be necessary to reexamine requirements regarding self-insurance standards and discount window preparedness. Barr pointed to the speed at which deposits left Silicon Valley Bank and Signature Bank, as well as concerns regarding banks’ ability to monetize their liquidity buffers. He emphasized the importance of contingency funding plans in liquidity risk management for banks of all sizes, and he noted that “using the discount window is not an action to be viewed negatively” and banks should be prepared to use the discount window “in good times and bad.” He said that a majority of banks have legal agreements in place to borrow from the discount window, but most had not recently tested their discount window access before the failures and resulting market stress. |
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| Fannie Mae and Freddie Mac to Raise Loan Limit for Mortgage Acquisitions |
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| | FHFA has announced that the baseline conforming loan limit values for mortgages that Fannie Mae and Freddie Mac will acquire in 2024 will increase by more than $40,000 from the previous year to $766,550 for one-unit properties. |
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| Financial Stability Board Releases Third-Party Risk Management Toolkit |
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| | The Financial Stability Board has released a guide for financial institutions and regulators on enhancing third-party risk management and oversight. The guide provides tools to help financial institutions identify critical third-party services and manage potential risks throughout the lifecycle of a third-party service relationship, including risks from service providers’ supply chains. |
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| FDIC Releases Cybersecurity Information Videos |
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| | The FDIC has added three videos to its online Technical Assistance Video Program, which is designed to provide information to bank directors, officers and employees on areas of supervisory focus and regulatory changes. The videos are “Cybersecurity Awareness for Bank Directors,” “Cybersecurity Awareness for Bankers” and “Information Technology.” |
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| OCC Virtual Workshop Schedule |
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| | The OCC has announced its 2024 schedule of free, virtual workshops for directors, senior management and other key executives of national community banks and federal savings associations. Topics will include credit risk, operational risk, management oversight, risk governance and compliance risk. |
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| IG Report on First Republic Bank Supervision |
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| | The FDIC missed opportunities to take earlier supervisory actions and downgrade First Republic Bank before its failure in May, according to a new report by the agency’s Office of the Inspector General. The report recommends that the FDIC ensure examination guidance requires supervisory action when bank business practices “consistently deviate from policies, procedures or risk appetite metrics.” It also recommends that the agency assess whether a revision to examination guidance is warranted in the areas of uninsured deposits and bank contagion risk characteristics. |
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| FDIC Updates Consumer Compliance Examination Manual |
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| FinCEN Extends BOI Reporting Timeframe |
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| | FinCEN has extended the timeframe for companies that will be created or registered in 2024 to report their beneficial ownership information (BOI). Under the final rule, companies created or registered in 2024 will have 90 days to report their BOI to FinCEN, up from 30 days. Starting in 2025, newly created or registered entities will have 30 days to file. | | Meanwhile, starting on Jan. 1, 2024, all covered entities created or registered before that date will have one year to submit their BOI to FinCEN. FinCEN has also updated its beneficial ownership information FAQ, small entity compliance guide, quick reference materials and informational video. |
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| Comment Deadline for Long-Term Debt Rulemaking |
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| | Banking regulators will extend the comment period on a proposed long-term debt requirement for banks with more than $100 billion in assets to January 16, 2024. |
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| VA Urges Pause on Foreclosures of Veteran-Owned Homes |
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| | The Department of Veterans Affairs is calling on mortgage servicers to pause foreclosures of VA-guaranteed loans through May 31, 2024. The agency is also extending the COVID-19 Refund Modification program through May 31, which will allow veterans to obtain a zero-interest, deferred-payment loan from VA to cover missed payments and modify their existing VA-guaranteed loan to achieve affordable monthly payments for the duration of the extension. VA said that by extending the COVID-19 Refund Modification program, it can continue assisting veterans with their loans while it launches a new home retention option, the VA Servicing Purchase program. |
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| | State Legislative & Regulatory Update |
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| | Candidate filing for North Carolina elections next year opened on Monday, with the filing period ending on December 15. The primary is scheduled for March 5, 2024. | | This election cycle includes races for governor, a number of statewide positions, and all 14 U.S. House and 170 General Assembly seats. |
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| | Term limits prevent Democratic Governor Roy Cooper from running for another four-year term, and current Republican Lt. Governor Mark Robinson, Democratic Attorney General Josh Stein and Republican State Treasurer Dale Folwell are among the candidates seeking to succeed him. Six of the 10 incumbents on the Council of State aren’t seeking reelection to their current positions. | | Candidates are also competing for one seat on the state Supreme Court, three on the Court of Appeals and hundreds of trial court judgeships and local positions. |
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| | Banks Backing Their Communities |
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| Bankers Volunteer as Guest Instructors for Credit Essentials Course |
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| | The NCBA, in partnership with the Risk Management Association, in 2023 delivered the Credit Essentials Certificate course at two Raleigh HBCUs: Shaw University (spring and fall semester) and St Augustine’s University (spring semester). The material was taught by 10 different bankers who volunteered as guest instructors, with support from university faculty: |
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| | | | | | Students took the Credit Essentials class as an elective and earned three credit hours towards graduation for their participation. At Shaw, six of nine students also opted to take the RMA Credit Essentials exam, with five achieving scores above 90% to earn the coveted RMA Credit Essentials Certificate. Three of those accepted paid internships from banks, which are valuable because they typically lead to job offers. | | Shaw is committed to delivering the Credit Essentials course again during the fall 2024 semester, while Johnson C. Smith University, Livingstone College and UNC Pembroke are planning to offer it in the Spring 2024 semester. The course is significant to the schools because it gives students “real world” application opportunities through case studies and access to the bankers who help teach the class, which is delivered virtually. | | Bankers with a background in credit who are interested in serving as a guest instructor please contact John Sullivan, NCBA Senior Director, University Relations, at johns@ncbankers.org. |
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| 2024 Bank Directors Assembly with NCBA and NCCOB | Mar. 4-5, 2024 |
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| | | | We are excited to partner with the North Carolina Office of the Commissioner of Banks to bring you the most comprehensive training for bank directors in North Carolina. Sign up for the 2024 Bank Directors Assembly by February 19, 2024, and save on registration with the Early Bird Discount. Visit the link below to reserve your seat at the table for this landmark collaborative event. |
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| Multistate Bank Counsel Conference | Dec. 14-15, 2023 |
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| | | There's just one week to go before the annual Bank Counsel Conference, but you still have time to sign up and join us in New Orleans on December 14-15! This conference will include two days of presentations on recent legislation and court decisions involving banking and commercial laws, as well as presentations on federal banking regulations and other current issues. Visit the link below to learn more and sign up. |
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| Economic Forecast Forum | Jan. 5, 2024 |
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| | | The NC Chamber and the North Carolina Bankers Association proudly present the 22nd Annual Economic Forecast Forum, a gathering of our state’s most influential leaders, to discuss how we can continue to lead in job retention, job creation, and quality of life. Join us for this annual event on January 5, 2024, for your first look at the economic forecast for the new year. |
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| | | Online Training with our Partnered 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 partnered training providers. Find your perfect webinar from ABA Training or OnCourse Learning today! |
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| | | Upcoming OnCourse Webinars |
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| - Assessing Environmental Risks in Commercial Real Estate Lending | December 7, 2023
- Beneficial Ownership Rules - Training for Your Staff | December 12, 2023
- Deposits End of Year Wrap Up | December 12, 2023
- IRS Information Reporting: Rules and Forms | December 13, 2023
- Navigating the FedNow Rules and Regulatory Compliance Environment | December 13, 2023
- 2023 Call Report Recap and Look Into 2024 | December 13, 2023
- Establishing a Culture of Compliance | December 14, 2023
- BSA Year End Wrap-Up | December 14, 2023
- Two Sides of the Same Coin: How and Why IT Should be Separated from IS | December 15, 2023
- Digital Assets - Overview & Regulatory Guidance | December 19, 2023
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| | | NCBA and NC Attorney General Share Message on Fraud |
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| | Fraudsters use a number of tactics to target retiring baby boomers and the growing number of older Americans. Senior financial abuse is estimated to have cost victims at least $2.9 billion last year alone. Watch this short message from NCBA President & CEO Peter Gwaltney and NC Attorney General Josh Stein, and then click here to familiarize yourself with the signs of common scams so you can protect your customers. |
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| | | Time Out for Trivia: Q's and A's to Enlighten Portfolio Management |
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| | If you’re a sports fan (and I know you are), and you’re also of a vintage that has recall back several decades, you may have heard of Todd Donaho. Donaho was the self-proclaimed “commissioner of sports trivia” as the host of Time Out For Trivia, a popular live call-in show that ran on the USA Network on weekday evenings from 1985 to 1990. |
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| | The commish would fire off questions in rapid-fire succession to phone-in contestants, who hoped to win prizes ranging from telephones to grills. Players would compete at their own peril, as Donaho would often ask “boneheads” who guessed incorrectly to “take a hike.” Nonetheless it was a winning formula, and by cable TV standards TOFT had high ratings. |
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| | What does this have to do with community banking? Hang with me as I pose a series of my own questions relating to community banks, which I hope you will view as more helpful than trivial. Even better: Your author supplies the answers, so there’s no risk of nationally-broadcast humiliation. As Donaho himself would exhort, “Who’s playing Time Out For Trivia?” |
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| North State Bank Celebrates Opening of New West Raleigh Office Building |
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| | North State Bank celebrated the completion of its new West Raleigh office building with a ribbon cutting ceremony, followed by an open house and luncheon with North State Bank President and CEO Larry D. Barbour. The new 31,000-square-foot building is located at 2413 Blue Ridge Road, the site of the Bank’s former office, which opened in 2004. |
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| | “Many thanks to the West Raleigh team members and customers who worked with us through the construction process—I think we can all agree it was worth the wait," said North State Bank West Raleigh Market President Harryson Turner. "I am delighted to welcome customers to our new space and lead the way as North State Bank grows our relationships along the Blue Ridge Corridor.” |
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| TowneBank Announces Quarterly Cash Dividend |
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| | TowneBank (NASDAQ: TOWN) announced today that its Board of Directors declared its fourth-quarter shareholder cash dividend of $0.25 per common share payable on January 12, 2024, to shareholders of record on December 29, 2023. |
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| Oakworth Capital Bank Named “Best Bank to Work For” in the U.S. by American Banker |
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| | Oakworth Capital Bank has been named the #1 “Best Bank to Work For” by American Banker. according to survey results from associates at participating financial organizations. |
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| | I bought my brother some gift-wrap for Christmas. I took it to the Gift Wrap department and told them to wrap it, but in a different print so he would know when to stop unwrapping. |
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| NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US |
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