Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn Credit Union Bill Passes NC House As anticipated, House Bill 187, the Credit Union Update, has passed the North Carolina House. We sent an update to NCBA members about all the activity on the bill this week.  Rep. Julia Howard (Davie, Rowan, Yadkin), Senior Co-Chair of the House Finance Committee and the longest-serving member of the North Carolina House explained the bill on the floor and asked for the support of House members. She focused much of her comments on “banking deserts” and giving credit unions added powers to serve rural areas.  Two others who spoke on the bill – Rep. Ya Liu (Wake) and Rep. Carla Cunningham (Mecklenburg) – criticized the closure of bank branches in some areas and argued that availability of branches is further limited by deed restrictions by banks on vacated properties so that the properties cannot be used as branches by other financial institutions. Upcoming Professional Development: Credit Analyst Development Program - April 14 - June 13 Internal Audit Seminar - May 20-21 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 2025 North Carolina School of Banking - July 21-25 Rep. Deb Butler (New Hanover) spoke very commandingly against the bill. She explained that that there are loopholes being exploited by some credit unions to get around common bond/field of membership limitations. She said that North Carolina was perilously close to treating credit unions like banks, but without taxing and regulating them like banks. She deserves our thanks for having the courage and conviction to say what many House members were unwilling to say publicly.  State Legislative & Regulatory Update Vote Count on HB 187 Those voting against HB 187 were: Republican Representatives Hastings and Stevens, as well as Democratic Representatives Alston; Ball; T. Brown; Butler; Carney; Lofton; Majeed; Charles Smith; and von Haefen.  Rep. Reives did not vote. Republican Representatives Bell, Campbell, B. Jones, Reeder, and Strickland, as well as Democratic Representatives Clark and Cohn had excused absences. The other members of the House voted in favor of the bill, including those we know have private misgivings. If the House member for your district voted against the bill, please take a moment to thank them. If your House member voted in favor of the bill, please consider contacting the House member’s office and let them know that you are deeply troubled by their decision to vote for House Bill 187.  Every member of the House received information from the bankers associations as to why the bill is anything but a simple “update” and why they needed to vote against it. Contact information for your House member’s office can be found using the Find Your Legislators tool. Legislators routinely vote through legislation at the urging of their caucus leaders and with the expectation that a bill will get fixed later, but, in this instance, they need to know that you took note of their vote.  Passing bills that are known to be riddled with problems is a questionable public policy approach. Although it was certainly in line with our predictions, it shouldn’t fall to the NC Senate to have to clean up the House’s bill.  Get Involved at the 2025 NCBA Legislative Day | April 16, 2025 Please make plans to join us on April 16th in Raleigh for networking and lunch, followed by remarks by North Carolina Governor Josh Stein and leaders of the North Carolina General Assembly.    Registration is open to bank executives and legislators. We encourage bankers to also consider arranging a brief meeting with your local legislator in the House or Senate, either in the morning before networking begins or in the early afternoon following the program’s conclusion at 2 pm. AGENDA 11:30 AM - Registration and Networking 12:00 PM - Welcome – Bob Washburn, NCBA Chairman Introductions – Peter Gwaltney, NCBA President & CEO 12:05 PM - Plated Lunch Served 12:30 PM - Remarks by Governor Josh Stein 12:50 PM - Overview of Pending Banking Legislation in the General Assembly – Nathan Batts, NCBA Senior VP, Counsel & Director of Government Relations 1:10 PM - Inside the 2025 Legislative Session - Remarks from Senate and House Leaders 2:00 PM - Closing Remarks – Bob Washburn, NCBA Chairman Learn More & Sign Up   Bill Tracker Updated Hundreds of bills have been filed since last week. Included with today’s Bulletin is our latest Bill Tracker. We are now lobbying on or actively monitoring close to 70 bills.  Commission Report The State Banking Commission met on Wednesday for a regularly scheduled meeting. The Commission reviewed the application to charter a public trust company to be known as Zero Hash Trust Company in Asheville. The Commission also received an update on the Office of the Commissioner of Banks’ financial position, an update on legislation, and a retrospective by Commissioner of Banks Katherine M.R. Bosken on OCOB’s activities in 2024. The next meeting is scheduled for June 11. Federal Legislative & Regulatory Update Phasing Out U.S. Treasury Paper Checks  Under a new executive order from President Donald Trump – effective September 30 – the U.S. Treasury will no longer issue paper checks for disbursements, including tax refunds, vendor payments, benefit payments and intergovernmental transfers. The order also covers the use of paper checks to pay the federal government “as soon as practicable, and to the extent permitted by law.” In addition to the above, the executive order directs the Treasury Department to develop a comprehensive public awareness campaign, including guidance on accessing and setting up digital payment options. Bill Removing ‘Reputational Risk’ as Supervisory Factor The OCC has commenced removing references to banks’ reputation risk from its Comptroller’s Handbook booklets and guidance issuances. Concurrently, the OCC has instructed its examiners that they should no longer examine for reputation risk.  According to news reports, the FDIC is also drafting rulemaking to remove reputational risk from its bank supervision. Beneficial Ownership Reporting  FinCEN has posted an interim final rule removing the requirement for U.S. companies and persons to report beneficial ownership information to FinCEN under the Corporate Transparency Act.  Upcoming Industry Advocacy Opportunities: ABA Washington Summit (April 7-9) and ICBA Capital Summit (May 12-15) Join us at the ABA Washington Summit (April 7-9) or the ICBA Capital Summit (May 12-15) to advocate for the banking industry on Capitol Hill. Your NCBA is actively engaged with both national trade groups to advance key legislative priorities, and these summits offer a chance to hear from national speakers, receive critical policy updates, and meet with North Carolina’s congressional delegation. Memberships with the ABA or ICBA are not necessary to attend these events, and participation in the briefings is free—but registration is required. ABA Washington Summit   ICBA Capital Summit   Opposition to Credit Card Competition Act  ABA, ICBA and eight other national trade associations have sent a letter to members of Congress restating their opposition to the Credit Card Competition Act, which would impose new network routing mandates on financial institutions that issue credit cards.  "Any legislative initiatives to expand the power of the federal government to intervene in the U.S. credit card market would harm consumers, small businesses and financial institutions alike by reducing choice, increasing costs and fraud risks, and creating economic challenges for smaller financial institutions.” Limiting the Use of Adverse Comments in Bank Applications  Federal Reserve Governor Michelle Bowman is urging the Fed board to reconsider its approach to adverse comments in bank applications. She gave a recent example of a branch approval that was delayed by six months because of a single comment.  Cybersecurity Information Sharing A dozen national trade associations are urging Congress to extend the Cybersecurity Information Sharing Act. The federal law—which established voluntary procedures for information sharing about cyberthreats between government and private entities, as well as protections for sharing among private sector companies—is currently set to expire on September 30, 2025. Recordkeeping of Foreign Transaction Records  OFAC has issued a final rule extending recordkeeping requirements for certain transactions from five to 10 years to make them consistent with the recently expanded statute of limitations for sanctions violations. This 10-year recordkeeping requirement went into effect on March 12 under OFAC’s interim final version of the rule. NCBA Announcements CBS Benefits Day and HR Workshop Draws Strong Engagement This week’s CBS Benefits Day and HR Workshop brought together HR professionals from across North Carolina for a day of timely insights, practical tools, and meaningful conversations. With sessions covering everything from evolving benefits strategies to key regulatory updates, attendees walked away with new ideas to strengthen their organizations and better support their teams. Thank you to everyone who joined us in Durham and helped make the event a success—and to our presenters for sharing their expertise! CBS Benefits Day continues to be one of our most prized annual traditions, and we’re already looking ahead to next year’s gathering. Explore Historic Charleston at the American Mortgage Conference | May 13-14, 2025 The American Mortgage Conference brings together decision-makers, investors, top financial leaders, and mortgage practitioners of every kind each year. Join your mortgage community for the chance to dive deep into crucial industry issues and discuss the latest progress from Washington. Don’t miss out on this annual tradition—join us on May 13-14, 2025, in historic Charleston, S.C.! Learn More & Sign Up   Save the Date for the 2nd Annual "Swing for the Future" NCBA Foundation Golf Tournament | June 5, 2025 Sharpen Your Skills at the 2025 Internal Audit Seminar | May 20-21, 2025 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. Learn More & Sign Up   Book Your Exhibitor Table at the NCBA/OBL Annual Convention | June 23-26, 2025 Showcase your business at the 2025 NCBA/OBL Annual Convention, where you’ll have the unique opportunity to connect with banking leaders from both North Carolina and Ohio—all in one incredible setting. Set against the stunning backdrop of The Omni Homestead Resort in Hot Springs, Virginia, this premier event brings together top industry decision-makers, providing unmatched exposure and networking opportunities for bankers and exhibitors alike. Learn More & Sign Up   Professional Development Training with our Partnered Providers Bank Accounting: Beyond the Basics - 5 Part Series- Part 1 - April 1 - 10 CPE Credits Fair Lending Workshop for Community Banks - April 2 - 2.5 CRCM Credits 2025 Call Report Preparation: 2 Day Streaming- Part 1 - April 3 - 12 CPE Credits BSA/AML and OFAC Compliance - 3 Part Series - April 3 - 7.5 CRCM Credits Mastering the Art of Financial Storytelling: Best Practices for Visualizing Data - April 3 - 1 CPE Credit Alert! FDIC Official Signs and Advertising Requirements - May 1st Deadline - April 4 - 2.5 CRCM Credits Bank Accounting: Beyond the Basics - 5 Part Series- Part 2 - April 8 - 10 CPE Credits The Rules and Regulations Governing ACH Transactions - April 10 - 1.8 AAP Credits Unlock the Secrets to Accurate Loan Reporting in Call Reports - April 11 - 2 CPE Credits NEW: Unwind with Carl Pry: The Dynamic Compliance Environment in 2025 - April 14 - 2 CRCM Credits Compliance Management System Essentials - April 16 - 2 CRCM Credits Bi-Monthly Compliance Briefing - April 2025 - April 17 - 2.5 CRCM Credits Bank Accounting: Beyond the Basics - 5 Part Series- Part 4 - April 22 - 10 CPE Credits BSA/AML and OFAC Compliance - 3 Part Series- Part 1 - April 23 - 7.5 CRCM Credits Selling in the Teller Line: Using the BRIGHT Approach - April 23 - 1.5 SHRM-CP Credits Bank Accounting: Beyond the Basics - 5 Part Series- Part 5 - April 29 - 10 CPE Credits CBS Spotlight Wealth Health: How Banks Benefit from Focusing on Finances and Fraud Community banks can and should play a pivotal role in the financial well-being of their customers. Marketing the importance of national observances dedicated to that well-being, such as National Consumer Protection Week (NCPW) and National Financial Literacy Month, contributes to both a customer’s financial literacy and the bank’s image as a trusted financial partner. Observances such as these are particularly essential at a time when financial literacy is on the decline and fraudulent activity is on the rise. Financial Literacy on the Decline  The TIAA Institute-GFLEC Personal Finance Index (2024) reveals that financial literacy among U.S. adults has been on a downward trend, “with many individuals functioning with a poor level of financial literacy.” In 2023, on average, U.S. adults answered 52% of the index questions correctly, while in 2024 that number dropped to 48%.1  This decline is concerning, as financial literacy is essential for making informed decisions about saving, investing, and managing debt. With rising economic uncertainty, the need for financial education has never been greater. Without proper knowledge, individuals may fall victim to predatory lending, struggle with budgeting, or fail to plan for long-term financial security. Now more than ever, financial organizations – like community banks – can (and should!) equip individuals with the necessary tools to navigate an increasingly complex financial landscape.  Fraudulent Activity on the Rise  Fraudulent activities, notably Synthetic Identity Fraud, Account Takeover (ATO), and Authorized Push Payment (APP) have seen a significant surge in the United States. Synthetic Identity Fraud involves creating fictitious identities by combining real and fabricated personal information. Account Takeover fraud, where criminals gain unauthorized access to individuals’ financial accounts, has also escalated. In 2024, 24% of consumers reported being victims of ATO, a rise from 18% in 2023.2 Authorized Push Payment fraud, which involves transactions where the account holder knowingly initiates a payment to a fraudster after being deceived into doing so, is also on the rise – thanks to more sophisticated fraud tactics and the prevalence of online and mobile banking.  Unique Opportunities for Community Banks  National Consumer Protection Week (NCPW), observed from March 2-8, and National Financial Literacy Month in April, present community banks with superb opportunities for showcasing their dedication to their customers’ financial well-being and piggyback off of the social movement these observances have in the community. By demonstrating their support of these observances – through messaging and educational events – banks can empower customers with essential financial knowledge while reinforcing the important role they play as trusted financial partners.  Read More ▶   Industry Update United Bank Celebrates 186 Years of Service United Bank marked a major milestone on March 17, 2025—celebrating 186 years since the bank first opened its doors. Founded on March 17, 1839, United has grown into a leading financial institution with a strong footprint throughout the Mid-Atlantic and Southeast. In keeping with tradition, United once again celebrated its anniversary with customers at local branches on St. Patrick’s Day, a holiday the bank has long enjoyed sharing. “To have successfully remained in business for 186 years is a testament to our longstanding commitment to providing excellence in service to all our stakeholders,” said Richard M. Adams, Jr., CEO of United Bankshares, Inc. in a press release. “We have been able to achieve significant milestones and tremendous growth over the years thanks in large part to the support of our communities. As we continue to strategically expand the Bank’s footprint, we remain committed to building and strengthening our relationships with our customers.” To celebrate 186 years of service and the customers who made it possible, United invited all its communities to join in anniversary celebrations by stopping by any local United branch this past St. Patrick’s Day for light refreshments. Words of Wisdom The meeting of two personalities is like the contact of two chemical substances: if there is any reaction, both are transformed. -  C.G. Jung NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.