Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn Teaching Kids, Protecting Elders: Banking's Year-Round Mission The month of April was Financial Literacy Month, I am extremely proud of the excellent work that NCBA member banks do in your communities to teach children and families about all aspects of financial management - both in April and throughout the year.   As a member of the ABA Foundation Board of Directors, which sponsors Teach Children to Save Day and many other financial education initiatives, I’m excited about the resources invested by the banking industry through the ABA Foundation, the NCBA Foundation, state bankers associations and individual banks across our country to encourage wise money management and foster financial independence.   May is Older Americans Month, and we turn our focus to the protection of our elderly customers and neighbors. I want to bring two specific items to your attention.  The NCBA is sponsoring a bill in the current legislative session, H 754, which allows banks to delay transactions by up to 30 business days when financial exploitation of an elderly or disabled customer is suspected.  The ABA Foundation has a wealth of resources related to protecting older customers. These materials are available at no cost to ABA members and non-members. Click here to review.  I encourage you to review these materials and explore how you can put them to use in your bank and in your community.  If you have any questions or if there is anything we can do to support you, please let us know.  Upcoming Professional Development: Internal Audit Seminar - May 20-21 Branch Manager Bootcamp - Next Session: May 21 Regulatory Compliance School - Lending: May 5, May 7, May 9 | Deposits: May 15 EFTA & Regulation E - June 5-6 Upcoming Annual Conferences: 2025 American Mortgage Conference - May 13-14 2025 NCBA/OBL Annual Convention - June 23-26 Women Lead Symposium - July 17 2025 North Carolina School of Banking - July 21-25 Register for the 2025 Internal Audit Seminar and Save! | May 20-21 Don't miss out on early bird savings! Sign up by Monday, May 12, and save on registration with the early bird discount. Lunch provided | Certificate of completion and learning hours included Whether you're new to internal audit or a seasoned expert, the 2025 Internal Audit Seminar offers two days of content tailored to your experience level. Day One is designed for basic and intermediate-level auditors, with sessions covering foundational skills, including asset/liability management and CECL. Day Two is built for experienced audit professionals, with a focus on emerging trends, governance, and the current regulatory environment. Don't miss this exciting two-part event! Register for either session based on your skill level, or sign up for both days and save on registration. A certificate of completion and hours of learning will be provided for you to submit for professional credits. The early bird discount is still in effect, but act quickly! The deadline to sign up and save with early bird registration is Monday, May 12. For more savings, send the whole team and take advantage of the group rate! Learn More & Sign Up   State Legislative & Regulatory Update Crossover Week Concludes on a High Note May 8 is the crossover deadline for the NC House and Senate. Unless an exception applies, legislation needed to pass the chamber in which it was filed by no later than May 8 in order to remain active for the remainder of the two-year session that runs through 2026. Impressively, the NC House and Senate concluded their business ahead of schedule and without the need to resort to late night votes.  Numerous bills that we have negotiated or lobbied on received required votes this week. For each of our bills that needed to pass to remain active, we were able to meet the deadline with support from key legislators. For each bill that needed to be negotiated or opposed, we negotiated to a favorable outcome or enlisted enough support from legislators to stop the legislation. Please see the most recent Bill Tracker for the latest status of each bill that we have been lobbying on or actively tracking. After this Bill Tracker, NCBA counsel and director of government relations Nathan Batts will remove legislation that failed crossover and which doesn’t appear to fit within an exception to NC House and Senate rules. North Carolina Legislation of Note This week, the following bills merit special mention: H 754 (Fin. Exploit. Prevention/Savings Bank Updates) One of the bills to make crossover was a bill filed at the bankers association’s request to allow for financial institutions to temporarily pause customer transactions for up to 30 business days – and extend for up to an additional 30 days – in situations of suspected financial exploitation of an older or disabled adult. The bill also includes updates to NC law for savings banks. House Commerce and Economic Development Chair Stephen Ross spoke about the bill when it made it to the House floor and explained why it was so critically important to pass the legislation. The bill passed unanimously. H 188 (Automatic Renewal of Contracts) This bill seeks to rein in certain kinds of contracts with automatic renewal clauses that the primary bill sponsors believe are disadvantageous to consumers. After continued lobbying by the bankers association and our members, the sponsors amended the bill to make it clear that banks are wholly exempt. This change prevents what would otherwise have been major impacts on highly customer-friendly bank products and services like certificates of deposit and lines of credit.  S 554 (Farmers Protection Act) This bill is massively improved and the bankers association went from opposition to the Senate version of this bill to being neutral. It creates a protected class for farmers, making it unlawful for financial institutions to deny or cancel a service to a farmer based on the farmer’s use of fossil-fuel powered machinery or fossil-fuel derived fertilizer. The Commissioner of Banks (or the Administrator of Credit Unions) would monitor for compliance by NC-state chartered institutions as part of the existing safety and soundness examination process. The bill in no way otherwise affects underwriting of loans. As initially filed, the bill started out with numerous provisions that would have been very detrimental to NC state-chartered banks, including an annual report attesting compliance, $10,000 penalties for each violation, treble damages under unfair and deceptive trade practices laws, and language that would have treated banks as guilty until proven innocent for making an environmental, social, or governance (ESG) commitment related to agriculture.  H 650 (No Interchange Fees on Sales Tax or Tips)  Last week, this bill, which would have rewritten what fees are permissible in credit and debit card transactions, had moved to an inactive status amid strong opposition. The bill’s primary sponsors sought to reactivate it and managed to get two committee meetings scheduled with the bill appearing on the proposed agendas. However, House leaders, who were mindful of the harm that similar state law changes have had in the State of Illinois, quickly put a stop to this and all committee agendas were updated to remove the bill. The legislation has now failed crossover. What to Expect in the Weeks Ahead? Starting next week, NC legislators will turn their attention to activity on bills that made crossover, as well as the state budget, with the House working on developing its proposal in response to the Senate budget (S 257). Although having a budget in place by the start of the new fiscal year on July 1 remains an aspirational goal, legislators face the reality that the state’s revenue forecast is murky.  Remember that the lingering effects of Hurricane Helene caused the postponement of certain tax filing and payment deadlines and relief from late penalties. Pair this with the need to tap reserves to help pay for various hurricane recovery efforts and insufficient federal funding, and you have a picture in which there is no meaningful surplus to spend or save like the state enjoyed in prior years.  All this contributes to speculation among insiders at the General Assembly that the House may present its budget, but the General Assembly ultimately may need to develop smaller and temporary spending packages during the month of June, address the bills that it can pass and send to Governor Josh Stein, and then possibly adjourn for a time and wait for a clearer revenue and spending picture that may not be in focus until this fall. A state budget could still be finalized before July 1, but as you can see, legislators face headwinds and uncertainty in the near term to achieve that goal. Federal Legislative & Regulatory Update Bowman Nomination The Senate Banking Committee has voted  to advance the nomination of Federal Reserve Governor Michelle Bowman to be vice chair for supervision. Bowman has served as a member of the Federal Reserve Board of Governors since 2018. Prior to her time with the Federal Reserve, Bowman served as the Kansas Commissioner of Banking. The nomination now goes to the full Senate for consideration. CFPB Asks Court to Vacate Medical Debt Rule  The CFPB has reached an agreement to end a lawsuit challenging its medical debt reporting rule by acknowledging the rule exceeded its authority. The rule, issued during the Biden administration, requires reporting agencies to remove medical debt and medical bills from credit reports. It also prohibits lenders from considering medical information when making lending decisions. 1071 Data Collection The CFPB has announced that it will not prioritize enforcement of the Section 1071 small-business lending data collection rule for businesses not covered by a court-ordered stay. In February, the Fifth Circuit Court of Appeals granted a stay in enforcement of the rule in a lawsuit brought by the ABA, Texas Bankers Association and others. The CFPB also extended the compliance deadlines to reflect the stay, but only for members of the co-plaintiff associations and intervenors in the case. The CFPB will deprioritize enforcement “because of the unfairness of enforcing it against entities not protected by the court’s stay but similarly situated to parties that are protected by the stay.” Community Bank Digitalization The OCC has issued a request for information on the key challenges and barriers faced by community banks in the adoption and implementation of digital banking solutions.  Comments are due 45 days following publication in the Federal Register.  Proposal to Change Purpose of the CDFI Fund  The proposed White House budget for the coming fiscal year would change the mission of the Community Development Financial Institutions Fund. The proposed budget would remove the CDFI Fund’s ability to allocate discretionary awards. Among the proposals is $100 million to create a Rural Financial Award Program, with 60% of CFDI loans and investments going to rural communities. Did You Know? Where Does NC Rank on the Financial Literacy Report Card? Now that April – Financial Literacy month – is behind us, this is a good time to ask:  how does North Carolina compare to other states?  Before we answer that question, did you know April was first recognized as National Financial Literacy Month in 2003 to help individuals and families with the knowledge and skills needed to make informed financial decisions? It encourages everyone, whether they’re just beginning their financial journey or already managing a budget, savings, and investments, to strengthen their financial foundation. North Carolina compares very well to other states in Financial Literacy. According to a 2024 survey we were number seven in the US. Like many things, starting young is important to success. And the NC Bankers Association is a firm believer in that, especially when it comes to financial literacy and children. As part of our long-term partnership with Marbles Kids Museum of Raleigh, we proudly sponsor the Moneypalooza exhibit, which teaches kids financial literacy skills through play-based learning.  “The NCBA and many of our member banks have sponsored Moneypalooza since 2011 as part of our commitment to financial literacy for North Carolinians of all ages,” said NCBA President & CEO Peter Gwaltney. “It’s a fun, unique and magical place. Children from all 100 counties visit Marbles each year and consistently rank the Moneypalooza exhibit as their favorite experience.” We will continue to support our members and the people of our state, because small changes today can lead to long-term financial success. And that’s good for all of us. NCBA Announcements 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 OBL/NCBA Annual 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   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   Professional Development Training with our Partnered Providers Authentic Leadership (ABA) - Self Paced Building Collaborative Teams (ABA) - Self Paced Communication 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 CRA Solutions’ CRA to Z: How to Build a Best-in-Class CRA Program | June 17-18 in Atlanta ICBA CRA Solutions, a Community Bank Services-endorsed vendor, is inviting North Carolina bankers to participate in CRA to Z: How to Build a Best-in-Class CRA Program. In this 1.5-day course to be held at the ICBA Center for Innovation in Atlanta, you will learn CRA management best practices to ensure compliance with current rules and regulations. Upon completion, you will earn 13.5 hours of CPE credit, and have the knowledge and tools required to maintain a robust CRA program for your bank. Join our friends from ICBA CRA Solutions in Atlanta on June 17-18! For bankers who can’t make June’s event, an alternative option has been scheduled for August 21-22 in Minnesota. Sign Up for June Option   Sign Up for August Option   Industry Update Providence Bank Announces Quarterly Cash Dividend Ted E. Whitehurst, President and CEO of PB Financial Corporation, the holding company for Providence Bank, announced today that the Board of Directors approved a quarterly cash dividend of $0.58 per share on common stock outstanding to shareholders of record at the close of business on May 8, 2025. The dividend is payable on May 23, 2025.  This is an increase of approximately 9.43% from the dividend paid during the 2nd quarter of 2024. This represents a $2.32 per share dividend on an annualized basis and a dividend yield of approximately 4.99% (based on closing price on April 25, 2025 of $46.50 per share) Piedmont Federal Bank Appoints TC Hinkle Chief Financial Officer Piedmont Federal Bank has promoted TC Hinkle to Chief Financial Officer effective April 21, 2025. Hinkle, who joined Piedmont Federal Bank in 2020 as controller, brings extensive financial leadership experience and a deep understanding of the banking industry to his new role. Throughout his tenure at Piedmont Federal Bank, Hinkle has overseen all financial, regulatory and tax reporting functions and played a key role in balance sheet management and liquidity strategies. He led critical initiatives including the implementation of the bank’s internal control framework in accordance with FDICIA requirements and the adoption of the bank’s new credit loss model. Before joining Piedmont Federal Bank, Hinkle spent 12 years in public accounting, providing audit and consulting services to financial institutions. He is a Certified Public Accountant licensed in North Carolina, a recent graduate of the North Carolina School of Banking, and recently served on the advisory council for the North Carolina Emerging Leaders. Words of Wisdom You have power over your mind, not outside events. Realize this, and you will find strength. -  Marcus Aurelius NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.