Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn Credit Union Bill Assigned to Senate Rules Committee House Bill 187, the Credit Union Update, passed the House on Wednesday of last week and has been referred to the Senate Rules Committee. We continue to encourage you to contact your member of the NC Senate about this bill. You can use the Find Your Legislators tool to identify your local Senator. If you call or email your Senator or speak with their legislative assistant, remember to ask them to oppose HB 187 in its current form because: The bill gives those credit unions pushing for the bill practically all the powers of banks without taxing, supervising or regulating them like banks. 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 The promised help for rural areas in the bill is a total illusion and is designed to mislead because there is no requirement whatsoever that credit unions actually put branches in those areas. Instead, they would be able to engage in digital marketing to siphon up deposits without any requirements to lend or open a branch.  Anyone who has ever paid a penny in federal or state income taxes has paid more than the entire credit union industry throughout its history. With the passage of the bill, anyone, anywhere in the world and any business could be a member of an NC-state-chartered credit union and there would be no meaningful difference between a credit union and a mutual bank – both are owned by their depositors/members – except that the tax exemption for mutual banks was repealed all the way back in 1951. The Tax Foundation continues to share an excellent article on its website explaining why it is well past time to reexamine the credit union industry – and its over $2.17 trillion in assets – rather than continue to give it expanded powers and a lack of accountability. 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   State Legislative & Regulatory Update Bill Filing Deadlines Notable bill filings at the North Carolina General Assembly since this past week include: HB 554 – Filed by the three House Finance Committee Senior Chairs, this bill would make various tax law changes, including revising GS 105-160.2, which deals with taxation of trusts and estates and addresses interstate situations where taxes must be apportioned. HB 631 – This bill filed by House Finance Committee Senior Chair Julia Howard and Democratic Representative Brandon Lofton would create a study commission to evaluate the feasibility of a “state infrastructure bank” to finance infrastructure projects. HB 650 – This is another bill filed by all three House Finance Committee Senior Chairs. The bill is expected to be very controversial as it would amend Chapter 66 (Commerce and Business) to prohibit debit or credit card issuers, payment card networks, acquirer banks, and processors from receiving or charging a merchant an interchange fee on the tax amount or gratuity of an electronic payment transaction and impose a civil penalty of $1,000 per violation. The bill also sets out the permitted uses of electronic payment transaction data, with any impermissible use deemed an unfair and deceptive trade practice (and subject to a treble damages). For the status of each of the bills we are lobbying on or following, please refer to this week’s Bill Tracker. Federal Legislative & Regulatory Update Regulators to Rescind the 2023 Community Reinvestment Act Rule  In a two-sentence, joint announcement, banking regulators said they intend to rescind the 2023 Community Reinvestment Act final rule in light of pending litigation. They will reinstate the CRA framework that was in place before the rule.  Blocking Issuance of Central Bank Digital Currency Senators Ted Budd and Thom Tillis have joined with Senators Ted Cruz (R-TX) and Kevin Cramer (R-ND) to introduce the Anti-CBDC Surveillance State Act (S 1124), legislation to block the Federal Reserve from issuing a central bank digital currency. The Anti-CBDC Surveillance State Act has also been introduced in the House as H.R. 1919 by Rep. Tom Emmer (R-MN), and cosponsored by Representatives Richard Hudson, Tim Moore, David Rouzer, Greg Murphy, and Addison McDowell. Crypto Activities by Banks The FDIC has issued a financial institution letter (FIL-7-2025) that provides new guidance for FDIC-supervised institutions engaging or seeking to engage in crypto-related activities. The new guidance, which rescinds FIL-16-2022, clarifies that FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval.  Climate Change Risk The OCC has withdrawn from interagency climate-related risk management principles for large banks. In related news, the SEC has voted to end its defense to several court challenges of its climate disclosure rule, which was part of a Biden Administration initiative to require companies to disclose material climate-related risks. Congressional Action on Overdraft Fees The Senate has voted in favor of a resolution to overturn the CFPB’s limit on overdraft fees. Banking Committee Chairman Tim Scott (R-SC) introduced the resolution (S.J. Res. 18) to repeal the rule, which was enacted in December of last year. The overdraft limit requires banks with at least $10 billion in assets to cap overdraft fees at $5 unless they voluntarily set a cap that covers their actual costs and losses or treat overdraft protection as a loan covered by the Truth in Lending Act.  Earlier this month, the House Financial Services Committee approved a companion measure from Chair French Hill (R-AR) – H.J. Res 59 – to reverse the rule.  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   How Suspicious Activity Reports Aid Criminal Investigations The law enforcement arm of the IRS has launched a new program to ensure financial institutions receive better information on how the agency uses suspicious activity reports to investigate federal crimes. The IRS Criminal Investigation (IRS-CI) headquarters will work with larger financial institutions, and field office personnel will work with regional and community banks in their respective areas of responsibility.  The initiative will include efforts to streamline subpoena requests and recommendations for financial institutions on what to include in SARs to maximize effectiveness. As part of the announcement, the IRS noted that more than 87% of the criminal investigations recommended for prosecution by IRS-CI from fiscal years 2022 to 2024 had a primary subject with a related BSA filing, with adjudicated cases resulting in a 97.3% conviction rate and defendants receiving an average prison sentence of 37 months. FinCEN Alerts FinCEN has issued a new alert for financial institutions on bulk cash smuggling and repatriation by Mexico-based transnational criminal organizations. FinCEN has also issued an advisory on reporting suspicious activity related to the terrorist organization ISIS. CFPB Will Not Enforce Small-Dollar Lending Rule  The CFPB announced that it will not prioritize enforcement or supervision actions with respect to its 2017 small-dollar lending rule, which was set to take effect March 30. Under that rule, after two tries to withdraw money from a borrower’s account have failed, covered lenders can’t try again unless the borrower specifically authorizes another attempt. The CFPB is considering the issuance of a notice of proposed rulemaking to narrow the scope of the rule. Elimination of FHA-Loan Eligibility for Non-Permanent Residents  FHA has announced that non-permanent residents are no longer allowed to access FHA-insured mortgages, part of a broader effort by the Trump administration to tighten immigration policies.  NCBA Announcements 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   Heather Dodgins Joins NCBA as Director of Member Engagement We're excited to welcome Heather Dodgins as the Director of Member Engagement at the North Carolina Bankers Association! A seasoned event strategist and relationship-builder, Heather brings a wealth of experience in nonprofit leadership, corporate partnerships, and large-scale event execution. Her career spans political fundraising in Washington, D.C., leading high-profile events with CLT Host 2020, and driving record-breaking campaigns at the American Heart Association. As the founder of Red Pines Consulting and former President of the Patriot Foundation, she has strengthened donor engagement and expanded funding for meaningful causes. Heather looks forward to deepening connections within North Carolina’s banking community and leading dynamic events that foster collaboration and growth. Please join us in giving her a warm welcome! Save the Date for the 2nd Annual "Swing for the Future" NCBA Foundation Golf Tournament | June 5, 2025 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   Professional Development Training with our Partnered Providers Tax Returns and Personal Financial Statements- March 25 - 1 CPE Credit Basic Bankruptcy 101 - March 26 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 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 Compliance Management System Essentials - April 16 - 2 CRCM Credits CBS Spotlight The Onus of ‘On Us’ Checks | Compliance Alliance An “on-us” check is one that is drawn on an account held at the same bank at which it is presented. That is, the bank is both the depository bank and the payor bank. In simple terms, the opposite of an on-us check is a transit check. A transit check is presented at another financial institution and subsequently sent to the payor bank through a clearing process for settlement. On-us checks carry different risks than transit checks, creating distinct responsibilities, particularly regarding wrongful dishonor and funds availability. No federal requirement obliges banks to pay on-us checks ‘over the counter’. If a non-customer physically presents an on-us check to “Bank of Snow”, there is no explicit requirement for the bank to pay that item (at least from a federal standpoint). Of course, most banks contractually agree to pay duly presented and properly payable items, so refusing an on-us check may incur legal risk from the drawer. That’s not to say the bank is prohibited from dishonoring this type of check for a valid reason, such as insufficient funds in the drawer’s account or failure of the payee to provide reasonable identification; but wrongful dishonor may occur in the absence of a valid reason. Read More ▶   Industry Update Fidelity Bank Welcomes Joe Diggs as SBA Lending Business Development Officer Fidelity Bank recently announced Joe Diggs has joined its team in Charlotte as an SBA Lending Business Development Officer. In his new position, Diggs is responsible for developing and managing business banking relationships within the community as well as contributing to the sales efforts of Fidelity Bank nationwide. His primary focus will be on expanding Fidelity Bank’s Small Business Administration lending program, as well as specializing in business acquisitions and commercial real estate financing. TowneBank and Old Point Financial Corporation Announce Agreement to Merge Hampton Roads based TowneBank (NASDAQ: TOWN) and Old Point Financial Corporation (NASDAQCM: OPOF), the parent company of The Old Point National Bank of Phoebus (“OPNB”), today announced the signing of a definitive agreement and plan of merger pursuant to which TowneBank will acquire Old Point and OPNB. The proposed transaction will enhance TowneBank’s position in the Hampton Roads MSA with the addition of a high-quality core deposit franchise. Pro forma for TowneBank’s recently closed acquisition of Village Bank and Trust Financial Corp. and the proposed acquisition of Old Point, the combined company would have total assets of $19.5 billion, loans of $13.1 billion and deposits of $16.3 billion as of December 31, 2024. TowneBank expects the acquisition to be approximately 10% accretive to earnings per share with fully phased-in cost savings on a GAAP basis. Southern First Welcomes Beth Byerley as Market Executive for Cary, NC Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, recently welcomed Beth Byerley as Market Executive and Senior Vice President. In her role, Byerly will grow Southern First’s presence in the Triangle and lead the bank’s expansion to Cary, North Carolina. Byerley joins Southern First with over 30 years of experience in banking, starting in commercial lending after completing her bachelor’s degree and MBA at Gannon University. On the Lighter Side The only fence against the world is a thorough knowledge of it. -  John Locke NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.