Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn North Carolina House Passes Budget Bill The North Carolina House is scheduled to hold a final vote today related to its version of the state budget. The House took the Senate’s budget proposal, which passed the Senate on April 17 as SB 257, and replaced the text with a version developed by House leaders.  Legislative staff at the General Assembly circulated a summary on Wednesday of key finance provisions in the bill as modified.  Upcoming Professional Development: Creating a Welcoming, Winning, World-class Workplace Webinar - June 4 EFTA & Regulation E - June 5-6 Fraud Academy - August 12-14 Bank Trainers Conference - October 7-9 Upcoming Annual Conferences: Business & Industry Spring Conference - June 3-5, 2025 (Discount Code: CWWW25) 2025 NCBA/OBL Annual Convention - June 23-26 Women Lead Symposium - July 17 2025 North Carolina School of Banking - July 21-25 The House and Senate have taken varying approaches to further cuts to the personal income tax rate. The rate stands at 4.25% in 2025 and is scheduled to go down to 3.99% in 2026 without regard to any triggers.  The Senate has proposed to reduce the rate to 3.49% in 2027 and to 2.99% in 2028 without any triggers. Thereafter, the rate could fall to 2.49%, 2.24%, and 1.99% if General Fund revenues meet certain trigger amounts between 2029 and 2036.  In contrast, the House would increase the General Fund revenue thresholds that would have to be met to trigger automatic reductions in the personal income tax rate between 2027 and 2034. The House version proposes a 3.92% increase in standard deduction amounts, with no similar provision in the Senate proposal.  In addition, the House proposes to create a deduction on the first $5,000 received as tips.  House leaders noted that their version would provide larger raises for state employees than the Senate and a back-to-school sales tax holiday that could be beneficial to lower-income North Carolinians. Also of note, the House is also seeking to eliminate about 2000 vacant positions in state government.  Passage of the $32 billion budget plan sets up negotiations between the two chambers over their competing budget proposals.   Get Inspired at the 2025 Women Lead Symposium | July 17, 2025 Bold Leadership. Real Conversations. Unmatched Insights. Find all this and more at the virtual 2025 Women Lead Symposium on July 17! Join banking professionals from across the country for a dynamic afternoon of growth, connection, and inspiration. This virtual forum brings together powerhouse voices in the industry to explore what it means to lead with purpose - and how to boldly pursue your ambitions at every career stage. Learn More & Sign Up   State Legislative & Regulatory Update Updated Bill Tracker The NCBA’s Bill Tracker has been updated this week to remove references to any bills that failed to crossover or which otherwise have no pathway to passage this session. With most of the focus this week on the House’s version of the budget, there has been essentially no movement on other legislation.    Bill Tracker ▶   Federal Legislative & Regulatory Update Credit Card Competition Act  Sen. Roger Marshall (R-KS) has filed an amendment (S. Amdt. 2230) that seeks to add credit card network routing mandates to a bill (S.1582 – the “GENIUS Act”) establishing a regulatory framework for payment stablecoins. Senator Marshall filed the amendment for himself and for Senator Dick Durbin (D-IL). As you will recall, Senator Durbin has been trying unsuccessfully to pass the mistitled “Credit Card Competition Act.”  The two Senators are now attempting to latch onto other legislation that appears to be moving in Congress, in this case the stablecoins bill, even if it is on a wholly unrelated topic. Deposit Insurance Fund Restoration  FDIC staff are predicting that the agency’s Deposit Insurance Fund reserve ratio will reach the statutory minimum of 1.35% by year's end.  Overturning OCC Bank Merger Rule  The House has voted in favor of a Senate resolution (SJ Res. 13) to overturn a 2024 final rule that changed how the OCC reviews proposed bank mergers. The legislation now heads to President Donald Trump for his signature.  FDIC Rescinds Bank Merger Policy  The FDIC board has voted to rescind a 2024 statement on bank mergers that expanded the factors taken under consideration when the agency reviews merger applications. The FDIC action means that thirty days from the date of publication in the Federal Register the FDIC will revert back to the statement of policy that that was in effect prior to 2024.  ‘Bank On’ Accounts May Have Reduced Unbanked Rates  An increase in the number of financial institutions offering Bank On-certified accounts may have contributed to the decline in unbanked households by lowering barriers to account ownership, according to new research by the Federal Reserve. When an account is Bank On certified, consumers know it has features like low or no fees, no overdraft charges, online bill pay and other basic attributes.  The number of financial institutions offering Bank On-certified accounts grew from two in 2015 to 403 in 2023. Over this same period, the unbanked rate among U.S. households has declined from 7.0 percent in 2015 to 4.2 percent in 2023.  CFPB Rescinds COVID-Era Mortgage Foreclosure Relief  The CFPB has issued an interim final rule ending protections for mortgagors experiencing hardships due to the COVID-19 pandemic. The CFPB pointed to the end of the public health emergency as the reason the protections are no longer needed. It also said that ending the policy is consistent with the Trump administration’s push to streamline regulation. CFPB Withdraws Proposed Rules  The CFPB has withdrawn two proposed rules dating back to 2024 that were related to data brokers and digital payment mechanisms.  The first proposed rule would have redefined “consumer reports” under the Fair Credit Reporting Act to include consumer identification information, such as name or Social Security number, and redefine data brokers and other entities as “consumer reporting agencies” when they assemble and furnish such information.  The second proposal would have expanded Electronic Fund Transfer Act protections to digital payment mechanisms, such as those involving stablecoins or certain credit card rewards points.  Yet Another Rule Withdrawn The CFPB has withdrawn a proposed rule to prohibit contractual provisions in agreements for consumer financial products or services that waive “substantive” consumer legal rights and protections. The CFPB concluded that the proposed rule is largely duplicative of the Federal Trade Commission's Credit Practices Rule. Banker News North Carolina Banks Receive $28,313 in Distributions from American Bankers Mutual Insurance, Ltd.; $3.8 Million Declared to Banks Nationwide American Bankers Mutual Insurance, Ltd. (ABMI), the reinsurer for the insurance program co-endorsed by the American Bankers Association (ABA) and North Carolina Bankers Association (NCBA), declared a $3.8 million annual distribution to be shared by qualified ABA member banks insured through ABA Insurance Services, a member of Great American Insurance Group. North Carolina banks collectively received $28,313 as a part of the distribution. This is the 35th consecutive year that the industry’s leading professional liability and bond insurance provider has declared distributions to eligible ABA member banks, bringing the total to $104.6 million since the program’s inception. ABA member banks that purchase their directors and officers (D&O), bond, cyber, property & casualty (P&C), and related insurances from this program are eligible to receive a distribution. Read 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   Protect Your Customers with Fraud Academy  | August 12-14, 2025 Fraud is costing financial institutions valuable time and money, but your bank can fight back. Fraud Academy is a first-of-its-kind online training program designed to equip employees at all levels with the tools to detect, prevent, and mitigate fraud. Led by experts from the U.S. Secret Service, law enforcement, and fraud prevention specialists, this intensive, live streaming program covers over 18 fraud risk areas, including check fraud, elder fraud, cybercrime, and more. Send your team to the ultimate fraud prevention training program. Join us online or in-person on August 12-14! 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 ICBA Securities Announces Virtual Bond School | June 10-12, 2025 ICBA Securities, an Endorsed Solution of Community Bank Services, announces its Virtual Bond School for 2025. The school will run from about 1:00pm to 4:30pm each day from June 10 through 12. Investment strategists from Stifel will cover investment basics, and portfolio construction and management. Up to 9 hours of CPE are offered for this complimentary event.  For additional information, please contact your Stifel representative or email FixedIncomeEvents@stifel.com. Industry Update Peoples Bancorp Announces Cash Dividend The Board of Directors of Peoples Bancorp of North Carolina, Inc., Newton, NC, the parent company of Peoples Bank, declared the company's regular cash dividend for the second quarter of 2025 in the amount of $0.20 per share. The second quarter cash dividend will be paid on June 13, 2025 to shareholders of record on June 3, 2025. Words of Wisdom Maturity is achieved when a person accepts life as full of tension. -  Joshua L. Liebman NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.