Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn NCBA Participates in ICBA Capital Summit This week, bank leaders joined NCBA president & CEO Peter Gwaltney in Washington, DC, for the ICBA’s Capital Summit. The pace has been relentless with briefings and eight Capitol Hill meetings with the NC delegation on just Wednesday alone. The timing of the fly-in and the conversations with members of Congress and their staff members has been particularly fortunate this year as the House is in the midst of trying to develop and pass legislation making a host of tax law changes. Upcoming Professional Development: Internal Audit Seminar - May 20-21 Branch Manager Bootcamp - Next Session: May 21 Creating a Welcoming, Winning, World-class Workplace Webinar - June 4 EFTA & Regulation E - June 5-6 Upcoming Annual Conferences: Business & Industry Spring Conference - June 3-5, 2025 2025 NCBA/OBL Annual Convention - June 23-26 Women Lead Symposium - July 17 2025 North Carolina School of Banking - July 21-25 Big thanks to David Barksdale of Piedmont Federal Bank, Jim Sills and Valerie Quiett of M&F Bank, Earl Worley of KS Bank, and Kyle Chavis of Lumbee Guaranty Bank for spending a day on Capitol Hill advocating for North Carolina's banking industry.   Bankers Gather in Charleston for the 2025 American Mortgage Conference Bankers gathered in Charleston, SC, this week for the American Mortgage Conference, hosted by NCBA and the ABA. Attendees from across the country received future outlooks on the mortgage industry, discussed the shift in deregulation by the Trump Administration, looked at modernization initiatives of FHA and VA, considered the future of Fannie Mae and Freddie MAC and changes to credit scores, focused on ways to leverage new technology, and examined the role of shared services and real world examples of how to deploy AI. Thank you to this year's American Mortgage Conference sponsors: Taxes, Tariffs and Treasuries - Discover What's in Store for Banks at the 2025 NCBA/OBL Annual Convention | June 23-26 We're headed to the beautiful OMNI Homestead Resort in Hot Springs, Virginia, June 23-26, for the 2025 NCBA /OBLAnnual Convention.  One of the highlights of this year's event is a must-attend, fast-paced opening keynote session from Dr. Elliot Eisenberg, Ph.D: Taxes, Tariffs and Treasuries:  What's in Store for Banks.  Over the course of this insightful look at the economic forces shaping our industry,  Dr. Eisenberg will break down: The outlook for all four components of GDP What's ahead for the labor market The impact of tariffs Inflation trends and the Fed's next moves Interest rates, the yield curve, consolidation and much more! Dr. Eisenberg will be taking questions, so come prepared! Don't miss this chance to learn, connect and recharge with your peers at one of the most scenic venues in the area. Register today and join us in Hot Springs, VA in June! Learn More & Sign Up   State Legislative & Regulatory Update Calmer Days at the General Assembly  After a massive amount of activity last week as the General Assembly dealt with the May 8 crossover deadline for legislation, this week has been calmer. A number of Republican legislators were in San Antonio, Texas, for the first part of the week participating in a meeting of the Republican State Leadership Committee (RSLC). Meanwhile, the House has been at work on its version of the state budget, with the first elements of its budget likely to be revealed beginning on Thursday.  Activity is soon expected to quickly crank up again as the two chambers deal with the budget and begin to set votes upon bills that made crossover.  Bill Tracker Updated Included with this week's Bulletin is the current version of our Bill Tracker. Strike-throughs are placed on those bills that appear to have failed the crossover deadline and which do not fit into exceptions. Determining which bills have failed crossover is not an exact science as some bills are vague and may have an impact on the budget, or make certain activity unlawful in concept without providing the critical information needed to make it clear one way or the other whether a bill remains active.  This Bill Tracker has strikethroughs for those bills that appear most clearly to have failed crossover and the NCBA’s counsel and director of government relations Nathan Batts will begin to remove these entirely from our Bill Tracker going forward. Batts will also trim bills that, while technically remain active under House and Senate Rules, have no realistic pathway of becoming law. Bill Tracker ▶   Federal Legislative & Regulatory Update President Trump Signs Resolutions Into Law President Donald Trump has signed into law a resolution – SJ Res 18 – overturning the CFPB’s attempted limits on overdraft fees. With the resolution’s passage, the CFPB cannot issue a similar rule in the future. President Trump also signed a resolution of disapproval – SJ Res 28 – nullifying a CFPB rule that had expanded the agency’s authority over digital payments.  Senator Ted Budd was an original cosponsor of SJ Res 28, while Rep. Tim Moore was a cosponsor of the related House resolution.  Tax Reconciliation The House Ways and Means Committee released this week its draft of the budget reconciliation bill – as tiled “The One, Big, Beautiful Bill.” The legislation would address the expiration of the 2017 Tax Cuts and Jobs Act and make changes to US tax policy. The Tax Foundation has released a brief summary of certain key aspects of the bill. From a banking perspective, the bill in its current form includes a provision of particular note in section 111107, beginning on page 190.  It would change the gross income calculation for banks and other qualified lenders by providing that gross income does not include 25 percent of the interest received on qualified real estate loans.  The loans at issue are those secured by rural or agricultural real estate which is used for the production of one or more agricultural products, substantially used in the trade or business of fishing or seafood processing, and aquaculture facilities.  The intent here is for financial institutions to pass through part of their tax savings by offering a lower loan interest rate to borrowers. While helpful and appreciated, this is a substantially scaled-down version of what was proposed in S. 838 and HR 1822, the Access to Credit for our Rural Economy Act of 2025 (ACRE), which included a full reduction in gross income, instead of a 25% limitation, and which would have also applied to loans associated with purchases of or improvements to single family residences in rural areas, provided the principal amount did not exceed $750,000. Further changes to the legislation are certainly possible, with some provisions of the bill likely to be improved and other provisions dropping out.  Federal Tax Policy and Credit Unions  Although the issue has been under discussion in Congress this year and would have raised billions of dollars in revenue annually while restoring much-needed fairness, the budget reconciliation bill as currently written does not change the tax treatment of credit unions, which remain wholly exempt from federal income taxes under 12 USC 1768.  We encourage members of Congress to ask themselves during the tax reconciliation process if it makes sense that an American consumer paying even 1 penny in income taxes has paid more in income taxes than the entire multi-trillion-dollar credit union industry has throughout its history dating back to 1934. Multi-billion-dollar credit unions can afford to pay millions annually to buy naming rights for stadiums, but can’t afford to pay income taxes, not even on the income derived from their business loans? In contrast, the tax treatment of mutual banks changed in 1951 as they began to make more commercial loans. Something is fundamentally wrong here. OCC Bank Merger Rule  The Senate has voted in favor of a resolution – SJ Res 13 – to overturn a final rule by OCC that changed how the agency reviews proposed bank mergers. The rule dates back to 2024, and, among other things, eliminated expedited review procedures and the use of streamlined applications. Senator Thom Tillis is an original cosponsor of the resolution. Representative Tim Moore is an original cosponsor of the related House resolution (HJ Res 92).  A day after the Senate vote, the OCC announced that it has adopted an interim final rule on bank mergers that restores the streamlined application and expedited review process.  CFPB Seeks to Reduce Reg Burden CFPB Acting Director Russ Vought has issued an order to rescind numerous guidance materials of the CFPB as part of an effort to reduce regulatory burden. The order lists a total of 8 policy statements, 7 interpretive rules, 13 advisory opinions, and 39 other circulars and bulletins that provide guidance. The list includes rescinding a policy statement on how the CFPB determines abusive acts or practices.  McKernan Nominated for Treasury Role Secretary of the Treasury Scott Bessent announced President Donald Trump's intent to nominate former FDIC board member Jonathan McKernan as undersecretary of domestic finance at the Treasury Department. Previously, McKernan was President Trump’s nominee for the role of the Director of the CFPB, but that nomination has not advanced in the Senate. Host State Loan-to-Deposit Ratios The federal banking agencies have jointly issued updated host state loan-to-deposit ratios. The ratios replace those issued in May 2024. A bank is generally prohibited from establishing or acquiring branches outside of its home state primarily for the purpose of acquiring additional deposits. Crypto Custody Services The OCC has issued an interpretive letter to clarify that banks are free to engage in crypto custody and execution services as long as such activities are carried out in a safe, sound and legal manner.  ‘GENIUS Act’ Stalls  The Senate has been unable to muster the required 60 votes to invoke cloture and bring the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S 1582) to a final vote. The bill would provide for the regulation of payment stablecoins, but momentum has slowed as members of the Senate have sought changes to the bill to prevent government officials from profiting from stablecoin ventures.  Buy Now, Pay Later Rule  The CFPB has announced that it will not prioritize enforcement of a 2024 rule defining lenders who provide buy now, pay later products as credit card providers under the Truth in Lending Act. Instead, the CFPB said it will focus its enforcement and supervision resources on pressing threats to consumers, particularly servicemen and veterans. The CFPB noted that it is considering taking action to rescind the buy now, pay later interpretive rule. Did You Know? IntraFi Makes Improving Your Bank's CRA Rating Easy​ For many bank executives, meeting  the Community Reinvestment Act requirements can feel like solving an intricate puzzle. But a new initiative offers a safe, straightforward solution to one key aspect of CRA compliance. Launched this past year by the Community Development Bankers Association (CDBA) and the National Bankers Association (NBA), the Advancing Communities TogetherSM Deposit Program provides banks with a secure and efficient way to fulfill their CRA obligations. By placing deposits into Community Development Financial Institutions (CDFIs) or Minority Depository Institutions (MDIs), your bank can earn credit toward the CRA’s community development and investment tests. “The ACT Deposit Program is a promising new tool for community and regional banks to earn CRA credit,” says Brian Blake, CDBA’s Chief Public Policy Officer and a former bank CRA officer. “ACT excels at meeting both the spirit and the letter of the CRA, and I believe it is very competitive compared with more complex, costly, or time-consuming alternatives." Learn More   NCBA Announcements Enroll in the North Carolina School of Banking | July 21 - July 25, 2025 Invest in your banking career with the North Carolina School of Banking, the state’s premier banking school for emerging leaders. Over the course of a full week, students gain in-depth industry knowledge from top banking executives and subject-matter experts, equipping them with the skills needed to excel in an evolving financial landscape. Join us in Boone, NC, from July 21-25, 2025, for an immersive learning experience designed to strengthen your expertise and expand your professional network. We hope to see you there! Learn More & Sign Up   Open for Participation – Banks of the Carolinas Compensation Survey! Are you ready to take your HR strategy to the next level? The Banks of the Carolinas Compensation Survey is here to support you in managing your employee compensation programs effectively. The North Carolina Bankers Association and Pearl Meyer are pleased to announce the survey is open for participation! Why This Survey Matters: Comprehensive Insights: Get detailed data on base salaries, salary ranges, short-term and long-term incentives, total cash compensation, and total compensation. HR Policies & Practices: Access in-depth information on salary increases, merit increases, structure adjustments, outsourcing, turnover, and recruiting. Strategic Advantage: Use this valuable tool to stay competitive and make informed decisions about your pay programs. Key Dates to Remember: Survey Effective Date: April 1, 2025 Submission Due Date: May 23, 2025 Results Published: Week of August 11, 2025 Exclusive Pricing: Participants: $650 Non-Participants: $1,495 Do not miss out on this opportunity to gain valuable insights and enhance your HR strategy. If you have not received your participation email, please contact Rhonda Snyder at rhonda.snyder@pearlmeyer.com to receive all the necessary details to participate. Attend the Business & Industry Spring Conference In-Person or Online | June 3-5, 2025 In the worlds of business and industry, the biggest constant is change. This conference covers a myriad of topics aimed to comprehensively address the trends and solutions accounting professionals and business leaders need to understand to position their organizations for future success. Highlights include: Champion Mindset from an Olympian CFOs Playbook to Leading Digital Transformation AI Driven Finance 2025 Corporate Tax Strategies Accounting vs Finance Roles Recovering from a Leadership Injury Ignite Employee Engagement NCBA members save 25% on registration: If you are attending in person, use this promotional code to claim your discount: BIS25_NCBA_IP If you are  attending virtually, use this promotional code to claim your discount: BIS25_NCBA_V Learn More & Sign Up   Professional Development Training with our Partnered Providers Authentic Leadership (ABA) - Self Paced Building Collaborative Teams (ABA) - Self Paced Communicating Vision (ABA) - Self Paced Leadership in Action Suite (ABA) - Self Paced Management Essentials Suite (ABA) - Self Paced Data Privacy 101 - June 2 The Role of AI in Risk Management and Banking: Innovations, Challenges, and Future Trends - June 5 - 1.8 APRP Credits Appraisal Review Workshop - June 5 - 3 CRCM Credits AI FAQs for Bank Accountants - June 6 - 1 CPE Credit Compliance for the Board: Meeting Annual Training Requirements - June 10 - 2 CRCM Credits 2025 Fair Lending All-Day Live Streaming - June 10 - 7 CRCM Credits ACH File Formats: Learn ACH File Formatting and Prepare for the AAP Exam - June 12 - 2 AAP Credits Responsibilities of the Information Security Officer - June 17  Alert! Beneficial Ownership Evolution – New Interim Final Rule - June 27 Need credits? Earn SHRM, AAP, APRP, CRCM, CPE and more with our partnered webinars! CBS Spotlight Social Media in the Age of AI with Bank Marketing Center | May 29, 2025 Join Bank Marketing Center and special guest Eric Cook of WSI Digital for a powerful session on how AI is transforming the way banks show up on social media. Discover how AI tools can help your team create better content faster, generate real engagement, and stay consistent across platforms. We’ll explore AI-driven strategies for writing posts, planning campaigns, generating video, and understanding your audience. Industry Update First Federal Bank Appoints David Hall as Chief Banking Officer First Federal Bank has promoted David Hall to Chief Banking Officer, effective April 23, 2025. Hall, who joined the First Federal Bank team in 2020 as the Director of Commercial Banking, brings extensive experience in fostering commercial banking relationships, strategic leadership, and product development.  Jeff Whittington, President/CEO of First Federal Bank stated, “David is a proven leader in retail and commercial banking. In his new role, David will continue to lead First Federal Bank’s retail and commercial banking efforts and will now also lead the bank’s marketing efforts. I am confident that we will see continued success under David’s leadership.” Southern First Welcomes Brandon Rich as Executive Director of Market Support Southern First Bancshares, Inc., holding company for Southern First Bank, recently welcomed Brandon Rich as Executive Director of Market Support and Senior Vice President. Rich has over 25 years of experience in banking, beginning as a teller while in college. In his role as Executive Director of Market Support, Rich will focus on commercial credit review and approvals. He values the balance of working with both numbers and people, and sees banking as a meaningful way to contribute to the community. “Brandon has extensive credit experience and will play an important role as we continue to grow our relationships in all our markets,” said Art Seaver, Chief Executive Officer.  Words of Wisdom You can't cross the sea merely by standing and staring at the water. -  Rabindranath Tagore NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.