Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn NCGA Crossover Deadline Looms As anticipated, this week has been extraordinarily busy at the NC General Assembly. May 8 is the crossover deadline, so legislators are scrambling to get those bills that don’t affect the budget or taxes passed out of the chamber in which they were filed. Failure to meet the deadline means a bill cannot be considered further unless it fits additional exceptions. Attached to today’s Bulletin is our latest Bill Tracker, tracking the status of the approximately 90 bills that we are lobbying on or monitoring. 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 Regulation E and Payments - 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 Leading and Succeeding at the 2025 American Mortgage Conference | May 13-14 In today’s mortgage landscape, effective leadership means more than setting the vision — it means seeing through your team’s eyes, shaping culture from the ground up, and driving results with clarity and conviction. Don’t miss Leading and Succeeding with Steve Richman at the American Mortgage Conference, where you’ll gain actionable insights to lead with purpose, empower your people, and deliver results. The mortgage landscape is changing fast. Earn certification credits while keeping ahead of the curve at the American Mortgage Conference on May 13–14, 2025! Learn More & Sign Up   This conference is approved for the following certification credits: 6.75 CERP credits (Certified Enterprise Risk Professional)   5.75 CRCM credits (Certified Regulatory Compliance Manager)  0.5 CFMP credits (Certified Financial Marketing Professional)  6.6 CPE credits (Continuing Professional Education) Major Bills of Note in the North Carolina General Assembly Much of our current lobbying activity is focused on the North Carolina House. In some cases, we are actively opposing legislation, while in others, we are working to secure key changes. On Tuesday, Nathan Batts—NCBA’s counsel and director of government relations—testified before three separate committees. Key bills of concern include: House Bill 188 (Automatic Renewal of Contracts) – This bill includes a provision that would remove an exemption for banks (and in the insurance context) that has been in place since the underlying statute was enacted in 2007. The bill would adversely affect a variety of bank offerings, triggering new disclosure requirements with no net benefit to consumers, including, for example, certificates of deposit and lines of credit. The bill had one hearing this week but later was removed from another committee calendar.  S 554 (Farmers Protection Act) – We oppose the House companion bill (H 62) and the current version in the Senate is even more problematic in its current form. We have been consistent in messaging each time the legislation has been heard in the House and Senate and, among other things have noted that there is not a single instance known of a financial institution discriminating against a farmer because the farmer uses fossil fuels, the legislation’s ESG definition has unintended consequences and would prevent contributions to national groups for Republican and Democrat legislators (because those organizations have conferences devoted to supporting agriculture), and the presumption treats NC state-chartered banks as guilty until proven innocent. H 919 (Fair Access to Financial Services) – Top House leaders understand we have fundamental concerns with this bill. The bill has not had activity since its filing given our strong and continuing opposition. H 956 (Enhance Financial Protections/Older Adults) – The sponsors are well-intentioned but their bill doesn’t do what the title and their descriptions suggest that it does. It would create impossible compliance standards for financial institutions. The bill has had one committee hearing, but after our testimony and outreach this week it is unlikely to advance further. H 650 (No Interchange Fees on Sales Tax or Tips) – The Electronic Payments Coalition organized against this bill. The bankers association and many banks joined together to support those efforts. After numerous conversations with legislators, the bill is now not expected to move further. Federal Legislative & Regulatory Update CFPB Agrees to End UDAAP Lawsuit  Banking and commerce trade groups have reached an agreement with the CFPB to end a lawsuit over changes to the bureau’s UDAAP exam manual. The plaintiffs noted that the joint stipulation with the CFPB to dismiss its appeal in the UDAAP manual case, “reaffirms that the Bureau exceeded its statutory authority when it 'updated' its exam manual and announced an open-ended and novel power to examine banks for alleged discriminatory conduct.”  CFPB Plans to Initiate New 1071 Rulemaking ‘As Expeditiously As Reasonably Possible’ The Consumer Financial Protection Bureau (CFPB)’s plans to initiate new rulemaking for its final rule implementing Section 1071 “as expeditiously as reasonably possible.” The move comes in response to litigation from the Revenue Based Finance Coalition (RBFC), which argues the rule unlawfully applies to Merchant Cash Advances (MCAs) and was issued without properly considering public input. On March 13, 2025, RBFC filed its motion to stay the 1071 final rule and hold proceedings in abeyance. In its response, the CFPB stated that its new leadership reviewed the 1071 final rule and the legal issues raised in this case to determine CFPB’s position. Following this review, the CFPB announced plans to begin a new rulemaking process for the 1071 rule. The bureau agreed with RBFC that this upcoming rulemaking could resolve or render the litigation moot and argued that placing the case in abeyance would preserve judicial resources. Full Story ▶   Fed, FDIC Withdraw Statements on Managing Risks for Crypto On April 29, Federal Reserve and FDIC rescinded two joint statements issued under the Biden administration on the risk management obligations of financial institutions should they offer crypto-related services. The move was the latest by Trump administration officials to roll back regulatory roadblocks for banks that wish to engage with digital assets. The first statement was issued in January 2023, not long after the collapse of cryptocurrency exchange FTX, and highlighted several key risks posed by cryptoassets that banks should consider if they wish to offer crypto-related services. That was followed by a second statement in February 2023 that reminded financial institutions of their risk management obligations should they offer depository services for cryptoassets. Full Story ▶   D.C. Circuit Panel Modifies Its Partial Stay, Bars CFPB Mass Layoffs A D.C. Circuit panel has barred the CFPB from carrying out any reduction in force, reversing an earlier decision that had allowed the agency to proceed with firing 1,483 employees. The ruling modifies a prior stay on a district court injunction, which had been granted after the National Treasury Employees Union sued, alleging the CFPB was unlawfully dismantling itself under the direction of President Trump and Acting Director Vought.  The court emphasized that preserving the agency's workforce is necessary while the appeal is pending and scheduled an evidentiary hearing to assess whether the CFPB violated the injunction. Judge Neomi Rao dissented, raising concerns over judicial overreach into executive functions. Executive Order Calls for Removal of Disparate-Impact Liability Last week, President Trump issued an executive order titled “Restoring Equality of Opportunity and Meritocracy” in which the White House eliminates enforcement of disparate-impact liability, which since the early 1970s has allowed courts to halt policies and practices that seem to exclude people based on characteristics such as race, gender and disability. The order could affect how federal fair lending laws are enforced. Full Story ▶   FASB Votes to End “CECL Double Count” in Bank Acquisitions On April 29, the Financial Accounting Standards Board voted to eliminate the CECL “double count” that is often recorded in bank mergers and acquisitions. The double counting of credit risk from acquired loans under the CECL standard has often increased “goodwill”, which is written off for regulatory capital purposes. The accounting has also caused confusion among bank investors trying to understand bank interest income.  FASB expects to issue a final standard later this year, with an effective date after fiscal years beginning after Dec. 15, 2026, including interim periods. Regulatory Burden on Banks  The House Financial Services Subcommittee on Financial Institutions held a hearing this week on regulatory overreach by banking agencies. Subcommittee Chairman Andy Barr (R-KY) said the Dodd-Frank Act and subsequent regulator actions created a “one-size-fits-all” approach to regulation that has hurt community banks.  Meanwhile, Subcommittee Ranking Member Bill Foster (D-IL) accused President Trump of attacking independent agencies such as the Federal Reserve, which he said has injected volatility into financial markets. Banker News Bank Survey: Many Americans Worry About Covering Unexpected Bills More than one in three Americans are not confident they have enough savings to cover unexpected bills, according to a new survey by TD Bank. The survey also found that many respondents believe owning a home is part of the American dream, but one-third have a negative outlook on their ability to purchase a home due to affordability (55%), the cost of borrowing money (32%), and economic uncertainty and job stability (29%). Full Story ▶   Did You Know? In Preparation for the Final Rule on CRA Modernization, Banks Need a Solid Foundation for their CRA Compliance Program | Free Webinar ICBA CRA Solutions, a Community Bank Services-endorsed vendor, is inviting all North Carolina bankers to a complimentary webinar on May 20 at 10:30 AM! This session will include: strategies for a successful CRA program setting goals for lending investments and services training and CRA exam preparation Learn how ICBA CRA Solutions' education and training, support services, peer groups, and CRA compliance programs will guide you through optimizing your CRA activities from start to finish. Learn More & Sign Up   NCBA Announcements Sharpen Your Team's Skills at the Internal Audit Seminar | May 20-21 Lunch provided | Certificate of completion and learning hours included Sharpen Your Team's Skills Before Audit Exam Times Begin! 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. Learn More & Sign Up   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   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 DataVerify Flood Services  A Community Bank Services endorsed vendor for over two decades and also a National Flood Association (NFA) certified company, DataVerify Flood Services provides flood zone determinations nationwide with Life-of-Loan tracking.  Lenders have an increased focus on the need to be fully compliant with flood act regulations. DataVerify Flood Services is dedicated to providing reliable flood zone determinations using powerful technology and experienced mappers to provide them in a timely and convenient manner.  DataVerify Flood Services also offers efficient data retrieval via interfaces within many loan origination software (LOS) systems, online, or through email notification. Borrower Notices and Census Tract/HMDA data are available with flood zone determinations, as well as a map copy product with aerial imagery to show flood zones on or near the property.   North Carolina Bankers can have access to efficient results through DataVerify Flood Services while also meeting The National Flood Insurance Program (NFIP) compliance requirements. Lenders can remain compliant today and throughout the life of the loan, even as flood zones change.  Contact Teri Sizemore at (419) 660-8589, teri.sizemore@dataverifyflood.com, to discuss your specific flood zone determination needs. Industry Update North State Bank Names Thomas Eller as Senior Vice President and Chief Mortgage Sales Officer North State Bank promoted Thomas Eller to Senior Vice President and Chief Mortgage Sales Officer, announced Amanda Lloyd, North State Bank EVP and Chief People Officer. Eller, who joined the Bank as a Mortgage Loan Officer in 2013, will support the mortgage team’s sales and customer support efforts. “Thomas has excelled as a mortgage lender for North State Bank,” said Lloyd. “He works hard and, his customers and teammates enjoy working with him. The Bank and our customers will benefit from his experience, as well as his passion and enthusiasm for the mortgage industry and what homeownership means for borrowers. The markets we serve in Wake and New Hanover counties are growing rapidly, and Thomas will make sure our experienced mortgage lenders are ready to meet demand and have the tools and support they need to respond quickly and effectively.” Uwharrie Capital Corp Announces 1Q25 Earnings Uwharrie Capital Corp and its subsidiary, Uwharrie Bank, reported consolidated total assets of $1.16 billion at March 31, 2025, versus $1.13 billion at December 31, 2024.  Net income for the three-month period ended March 31, 2025, was $2.6 million versus $2.4 million for the same period in 2024. For the three months ended March 31, 2025, net income available to common shareholders was $2.4 million, or $0.34 per share, compared to $2.2 million, or $0.31 per share, for the three months ended March 31, 2024. Net income available to common shareholders takes into consideration the payment of dividends on preferred stock issued by the bank. The year-over-year improvement in net income as of March 31, 2025 is due to improvement in net interest margin resulting from increased earnings on growth in the loan portfolio. 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) Words of Wisdom Don't look for miracles. YOU are the miracle. -  Henry Miller NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.