Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn Credit Union Legislation  Business North Carolina has published an article related to the attempted re-engineering in the NC House of NC Senate Bill 595. The bill as modified included a massive expansion of credit union powers modeled on House Bill 187. You answered the NCBA’s action alert last week, making countless calls and sending emails to our elected legislators in the NC General Assembly. Thank you!  The NC Senate squarely rejected the proposed changes by an overwhelming vote of 41-1. Upcoming Professional Development: Fraud Academy August 12-14 CAVA RMA Commercial Lending School October 20-24 Upcoming Annual Conferences: 2025 North Carolina School of Banking July 21-25 NC Emerging Leaders Conference November 3-4 2025 Management Forum November 4-6 The Business North Carolina article includes a quote by Rep. Deb Butler (D-New Hanover), who voted against both S 595 and H 187: “We love our credit unions, we want them to be successful and provide the services, but if they want to become banks, they need to start paying some taxes.” As we have consistently maintained, there are roles for both banks and credit unions, but when credit unions seek to have all the powers of banks, then they should be taxed, supervised, and regulated like banks. Speaking of Business North Carolina, we encourage you to look at an article it featured entitled “NC Financial: Tar Heel Banking.” Included in the article is a listing of the 50 largest banks and credit unions based in North Carolina. Out of the top 25 by assets, 10 are credit unions. Out of the top 50, a total of 21 are credit unions.  Read More ▶   Set Your Team Up for Success with the North Carolina School of Banking | July 21-25, 2025 Invest in talent, grow your leadership bench, and strengthen your bank from the inside out. The 89th Annual North Carolina School of Banking returns this month, offering a proven path for developing high-potential employees into confident, capable banking leaders.    📅 July 21–25, 2025    📍 Appalachian State University | Boone, NC Through expert-led lectures, hands-on projects, and real-world problem-solving, NCSB equips middle managers and emerging leaders with the knowledge and tools they need to grow—both personally and professionally. Send your bank's rising stars to the North Carolina School of Banking. Sign Up & Learn More   NC Banking Community Highlights NCBA Foundation Awards Scholarships to Two Outstanding Students The North Carolina Bankers Association Foundation recently awarded scholarships to two exceptional students: Jackson Gaydica of Winston-Salem and Peyton Robinson of Pamlico County. L-to-R: Peter Gwaltney, NCBA CEO; Drew Covert, Southern Bank CEO; Peyton Robinson, Scholarship Recipient; and parents Jeffry Robinson, Southern Bank, and Mari Robinson, Pamlico County Schools. L-to-R: Keith Gaydica, Truist; Jackson Gaydica, Scholarship Recipient; and Peter Gwaltney, NCBA CEO State Legislative & Regulatory Update Adjournment? Not Yet… The NC House and NC Senate were unable last week to reach agreement on the legislative schedule for the remainder of 2025. The Senate voted upon and sent to the House a resolution - Senate Joint Resolution 772 – proposing adjournment, followed by legislative days of July 29-July 31, August 26-August 28, September 23-25, October 7-October 28, and November 5, with the schedule thereafter to be set by further joint resolution.  House Speaker Destin Hall However, House Speaker Destin Hall informed House members that they will not be voting for the next couple of weeks and that he will give members notice when the schedule is worked out. Read More ▶   Bill Tracker Included with today’s Bulletin is our current Bill Tracker, showing the status of all the bills we are following. Federal Legislative & Regulatory Update Provisions in Budget Reconciliation Bill Relevant to Banks Earlier this week, the Senate passed its changes to the budget reconciliation bill (H.R. 1) on a 51-50 vote, with Vice President JD Vance casting the tie-breaker vote, sending it to the House. Republican Senators Thom Tillis, Susan Collins (ME) and Rand Paul (KY) joined Democrats and voted no.  As noted in a joint letter by bankers associations, including NCBA, the legislation would provide a 25% exclusion for interest earned on loans secured by agricultural and ranch land, and make permanent a series of changes such as:  L-to-R: Sen. Thom Tillis (NC), Sen. Susan Collins (ME), and Sen. Rand Paul (KY) the Section 199A deduction that levels the playing field for Subchapter S banks; the enhanced estate tax exemption that protects family-owned businesses, including banks, from having to liquidate to pay estate taxes; and the New Markets Tax Credit that banks use to support growth in distressed communities. FedNow Gets a Further Upgrade The FedNow instant payments service has launched a new account activity threshold feature and raised their transaction limit from $500,000 to $1 million. Financial institutions can now set parameters around sending activity for a wide range of customer segments, from established business customers to new individual account holders, as an additional level of security. Approximately 1,400 banks and credit unions nationwide use the FedNow network.  Regulators Urged to Index Supervisory Asset Thresholds The NCBA has joined bankers associations nationwide in sending a letter to federal banking agency leaders urging them to prioritize the indexing of supervisory asset thresholds. The letter notes:  “Inflation affects every corner of the American economy… Yet, many supervisory asset thresholds applicable to banks remain fixed in nominal terms, unchanged for years or even decades.”  The letter goes on to add: “thresholds that once reflected meaningful distinctions in size, complexity, or risk now capture institutions that were never intended to be subject to more burdensome regulatory requirements.” 2025 List of Distressed or Underserved Communities The federal banking agencies have published the 2025 list of distressed or underserved nonmetropolitan middle-income geographies where certain bank activities are eligible for Community Reinvestment Act credit. The communities in North Carolina appear beginning on pages 94 to 100. Areas within 35 of North Carolina’s 100 counties appear in the list. Crypto as an Asset for Single-Family Loans FHFA Director Bill Pulte has directed Fannie Mae and Freddie Mac to prepare proposals to allow cryptocurrency to count as an asset for a mortgage. Pulte said the order is in keeping with the pledge by President Trump “to make the United States the crypto capital of the world.”  Fannie and Freddie would consider crypto that is stored in a U.S.-regulated centralized exchange and would consider additional risk mitigants as part of their assessments, including adjustments for market volatility and ensuring risk-based adjustments to the share of reserves comprised of crypto. Capital Standards for Large banks  The Fed, FDIC and OCC have issued a joint request for comment on a proposal to modify certain regulatory capital standards for large banks. The proposal would set the enhanced supplementary leverage ratio for both bank holding companies and their depository institution subsidiaries so that it is based on a banking organization’s overall systemic risk. Comments are due August 25.  In related news, the Federal Reserve has released the agenda for a July 22 conference on the key pillars of the regulatory capital framework for large banks.  FinCEN Issues Orders to Counter Fentanyl Trafficking FinCEN has issued orders identifying three Mexico-based financial institutions as being of primary money laundering concern in connection with illicit opioid trafficking.  The orders target CIBanco S.A., Institution de Banca Multiple (CIBanco); Intercam Banco S.A., Institución de Banca Multiple (Intercam); and Vector Casa de Bolsa, S.A. de C.V. (Vector). Covered financial institutions are prohibited from engaging in transmittals of funds from or to these institutions, or from or to any account or convertible virtual currency address administered by or on behalf of the three institutions.  The prohibition becomes effective 21 days following publication in the Federal Register. 2025 Fed Stress Test Results The Federal Reserve has issued the results of the annual bank stress tests of 22 large banks. The results. This year’s stress test scenario included a severe global recession with a 30% decline in commercial real estate prices, a substantial increase in office vacancies and a 33% decline in house prices.  All 22 banks tested remained above their minimum common equity tier 1 capital requirements during the hypothetical recession, after absorbing total projected hypothetical losses of over $550 billion. Alternative Method for Obtaining Taxpayer Identification Numbers FinCEN, OCC, and FDIC have issued an order allowing banks a new exemption to customer identification program (CIP) rule requirements. The Federal Reserve Board did not participate. Under the order, banks are permitted, but not required, the option to collect taxpayer identification number information from third parties rather than directly from bank customers when opening accounts, so long as the bank otherwise complies with the CIP rule. Semiannual Risk Perspective The federal banking system remains sound, the OCC reported in its most recent semiannual risk perspective report. The report covers risks facing national banks, federal savings associations, and federal branches and agencies based on data as of December 31.  Among the trends highlighted, the OCC noted that commercial credit risk is increasing, driven by growing geopolitical risk, sustained higher interest rates, growing caution among businesses and their customers, and other  macroeconomic uncertainty.  Operational risk also is elevated, with the OCC warning that failure to upgrade systems and digitize may result in loss of market share to competitors offering faster and cheaper payment alternatives. HUD Seeks to Reduce Homeownership Financing Costs HUD Secretary Scott Turner has announced that FHA is rescinding more than 12 sub-regulatory policies under its Single Family mortgage insurance program. The changes are intended to reduce the cost of homeownership and eliminate financial and regulatory burdens. The rescissions span the loan origination process from the point of mortgage application submission through FHA’s issuance of an insurance endorsement on the mortgage. NCBA Announcements Back-to-Back NC Emerging Leaders Conference and Management Forum are Now Open For Registration! | November 3-6, 2025 This November, two generations of banking leadership come together at the historic Omni Grove Park Inn. Don't miss these back-to-back annual traditions: North Carolina Emerging Leaders Conference | Nov. 3–4 Management Forum | Nov. 4–6 Join us in Asheville, where tomorrow’s leaders will meet today’s decision-makers to exchange ideas, build connections, and shape what’s next for North Carolina's banking industry. NC Emerging Leaders   2025 Management Forum   Get Inspired at the 2025 Women Lead Symposium | July 17, 2025 Bold Leadership. Real Conversations. Unmatched Insights. Ready to lead with confidence and make a lasting impact? The Women Lead Symposium is a half-day virtual program designed to equip you with the insights and skills to grow as a leader, no matter your title or experience level. Hear from inspiring speakers, engage in real conversations about leadership in banking, and walk away with the tools to elevate your career and your institution. This collaborative event—hosted by the ABA, NCBA, and a coalition of state bankers associations—also offers valuable guidance for navigating key leadership roles, expanding your professional network, and driving long-term success at your bank. Registration Fees:  Individuals - $149  Groups (5 Bankers) - $499 View Program   Register Now   Earn Credits through Online Professional Development Total TRID Training - 4 Part Series - July 7 - 10 CRCM Credits Consumer Lending - July 7 - October 24 (ABA) The Banking Industry - July 7 - August 1 (ABA) The Board Secretary Role: Organizing, Planning, Tracking & Maintaining Accurate Records - July 10 Red Flags for Money Laundering - July 10 Consumer Lending Training Program - July 15 Hot Topics in the IT Examination - July 18 Small Bank Community Reinvestment Act (CRA) Workshop- July 21 - 3 CRCM Credits Analyzing Financial Statements - July 21 - November 7 (ABA) Building Customer Relationships - July 28 - August 22 (ABA) Managing The Bank’s Investment Portfolio - July 28 - August 29 (ABA) Navigating New RTP and FedNow Rules - July 30 - 1 APRP Credit Unclaimed Property Compliance for Financial Institutions - July 30 Test Before You Test: AAP Exam Strategies Workshop - July 31 - 3 AAP Credits Need credits? Earn SHRM, AAP, APRP, CRCM, CPE and more with our partnered webinars! CBS Spotlight Whole Lotta Thinkin’ Going On: Fed’s Forward Guidance Reflects Uncertainty By Jim Reber, ICBA Securities I hope the readers of this column will excuse the lack of decorum in the title, but in reading and listening to the words of the Federal Reserve Board’s members over the past month, I hear a lot of hedging. And far be it from me to second guess the respective governors and regional presidents of our central bank. If they were asked individually for their druthers, I suspect they’d prefer an economic, fiscal and geopolitical backdrop that had less drama. Not to mention an inflation track that would get back to its elusive 2% target. August Bank Strategies Webcast ICBA Securities and its exclusive broker, Stifel, will host their Quarterly Bank Strategy webinar on Aug. 7 at 1:00 PM Eastern. Several strategists and economists will make presentations, and up to 1.5 hours of CPE are offered. For more information and to register, contact your Stifel rep. Alas, such doesn’t seem to be the near-term expectations of the Fed. We were shown their most recent projections for the key indicators in the quarterly Summary of Economic Projections (SEP), released on June 18. Several closely watched metrics such as inflation and gross domestic product (GDP) had significant revisions from the previous quarter. The notorious “dot plot,” in which the 19 members are obliged to place a marker on a grid that corresponds with their guess as to where the fed funds rate will be in one, two, three years and beyond, reflects a wide dispersion of thought. Read More ▶   Industry Update Uwharrie Capital Corp Ranked Among Nation’s Top 20 Community Banks by American Banker Uwharrie Capital Corp (OTCQX: UWHR), the parent company of Uwharrie Bank, has been named one of the Top 20 Publicly Traded Banks in the United States under $2 Billion in Assets, according to American Banker and Capital Performance Group. Uwharrie was ranked #15 nationally, based on its three-year average return on average equity (ROAE)—a key measure of long-term profitability and stewardship. This recognition places Uwharrie among an elite group of high-performing community banks that are proving the enduring value of locally rooted, relationship-driven financial services in an increasingly complex economic landscape. “This honor reflects our commitment to sound governance, community interdependence, and prudent capital stewardship,” said Roger Dick, CEO of Uwharrie Capital Corp. “We view this not simply as a financial achievement but as a sign of trust earned—from our customers, shareholders, and the communities we serve.” Words of Wisdom Champions aren’t made in the gyms. Champions are made from something they have deep inside them­­ – a desire, a dream, a vision. -  Muhammad Ali NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.