Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn Update on ‘Farmers Protection Act’ Last week, we reported on issues involving the Farmers Protection Act (H 62). Thank you to everyone who took a moment to contact your House member in the North Carolina General Assembly to express concerns.  Although the bill was poised to be heard by the House Rules Committee on Monday afternoon as a final stop before the House floor, the bill was re-referred to the House Commerce and Economic Development Committee, an indication that the House intends to take a more deliberative approach to reviewing the bill. Until that change, the bill was fast-tracked, without a referral to House Commerce, which is the primary committee for reviewing banking bills this session.  Upcoming Professional Development: CBS Benefits Day & HR Workshop - March 25-26 Regulation E and Payments - April 10-11 Credit Analyst Development Program - April 14 - June 13 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 The bill’s sponsors have improved the legislation, but we question the need for a bill, as we believe that any suggestion that NC-state-chartered banks are discriminating against farmers is not supported by facts. As explained in the last edition of the Bulletin, the bill contains a rebuttable presumption that treats banks as guilty until proven innocent and the bill imposes a civil penalty of up to $10,000 per violation. 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 New Bill Filings NCBA continues to monitor the status of several banking-related bills through the 2025 Bill Tracker. Among the new bill filings this week, we call your attention to: H 432 – Protect Our Homes Act – which creates a new “homestead exemption from forced sale,” which, if passed, could place new limits on foreclosure to enforce debts owed; enforcement of purchase-money mortgages would not be affected, but we are reviewing to see if foreclosures tied to defaulted loans in the refinancing context would be affected; H 454 – Review of Federal Acts/Rules/Regulations – which would bar implementation of certain federal actions in North Carolina that the General Assembly or the Attorney General determine to be unconstitutional; the list specifically references regulation of the financial sector as it relates to environmental, social, or governance standards; and S 327 – NC Bitcoin Reserve and Investment Act – which would authorize up to 10% of state public funds to be placed in Bitcoin. Bill Filing Deadlines Unless bill filing deadlines are further amended or the legislation fits within an exception, the deadline for most bills to be filed in the NC Senate is 4:00 PM next Tuesday, March 25. In the House, the deadline is 3:00 PM on Thursday, April 3. To date, there have been 789 bills filed. We understand that there is still a considerable backlog of bills waiting to be filed after General Assembly bill drafting staff attorneys finalize them.  Remember that we typically see about 2,000 bills filed over a two-year period. Disaster Relief Legislation The North Carolina House and Senate have given final approvals to House Bill 47, the Disaster Recovery Act of 2025 – Part I. Governor Josh Stein quickly signed the bill into law the same day it was presented to him. The legislation provides $524 million for disaster relief and other initiatives. It includes $120 million for a home reconstruction and repair program, $200 million for the agricultural disaster crop loss program, $100 million for repairs of private roads and bridges, $55 million for small business infrastructure grants, and millions more for other purposes.   Federal Legislative & Regulatory Update Pulte Confirmed as FHFA Director The Senate has confirmed Bill Pulte as director of the Federal Housing Finance Agency. Pulte, who was serving as CEO of the private equity firm Pulte Capital Partners, said his top priority will be to strengthen and safeguard the housing finance system. The Wall Street Journal is reporting that after being named to lead FHFA, Pulte quickly moved to restructure the boards of Fannie Mae and Freddie Mac, where Pulte will now serve as chairman of both companies. Bill Removing ‘Reputational Risk’ as Supervisory Factor The Senate Banking Committee has voted to advance legislation – The Financial Integrity and Regulation Management (FIRM) Act (S. 875) – to prevent federal banking regulators from using reputational risk as a component in supervision. Sen. Thom Tillis is an original cosponsor. The bill would eliminate all references to reputational risk as a measure to determine the safety and soundness of regulated financial institutions.  Senate Banking Committee Chairman Tim Scott (R-SC) referred to the bill as the “first step in ending debanking.” Illinois Litigation over Interchange Fees The plaintiffs in a case challenging Illinois law restricting interchange fees have filed a motion for summary judgment. The case – Illinois Bankers Association, et al, v. Kwame Raoul (in his official capacity as a Illinois Attorney General) – threatens the continued smooth operation of the nation’s card payment system on an interstate basis.  The plaintiffs, which include our counterparts at the Illinois Bankers Association, ABA, and others, have challenged that state’s interchange fee prohibition, which carries penalties of $1,000 per transaction for violations and which forces issuers to forgo a portion of interchange revenue that compensates for taking on credit risk, monitoring for fraud, and providing benefits to cardholders.  The court has been receptive to arguments that the law should be preempted as to national banks, and they have been working to make the case that there should be a permanent injunction against enforcement that covers federal and out-of-state banks as well as other participants. There have been rumblings that similar legislation to the Illinois law could soon be filed in North Carolina. Social Security Administration Limits Changes to Bank Information The Social Security Administration (SSA) has announced that beneficiaries will no longer be able to change their direct deposit bank information through a phone call. SSA estimates that 40% of Social Security direct deposit fraud is associated with someone calling the administration to change direct deposit bank information. Beneficiaries must now use two-factor authentication with SSA’s “my Social Security” service or visit a local Social Security office to prove their identity. ‘GENIUS Act’ The Senate Banking Committee has voted to advance S. 394, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which would create a regulatory framework for payment stablecoins. The bill’s sponsors said the legislation will establish procedures for institutions seeking licenses to issue stablecoins, implement reserve requirements, and create tailored regulatory standards for stablecoin issuers. Resolution to Overturn Medical Debt Rule Sen. Mike Rounds (R-SD) has introduced S.J. Res. 36, a resolution to overturn the CFPB’s medical debt rule, which bans credit bureaus from including medical debt on credit reports. The rule also prohibits lenders from considering medical information when making lending decisions. Senator Rounds noted that the final rule was submitted on January 7, 2025, less than two weeks prior to the end of former President Joe Biden’s term.  Social Security Number Verification The Social Security Administration has announced a plan to reduce costs and enhance its Electronic Consent Based Social Security Number Verification (eCBSV) service, which allows financial institutions and other permitted entities to verify if an individual’s Social Security number, name and date of birth combination matches Social Security records. The plan calls for reducing operating costs by as much as 40%, reducing annual fees charged to participating entities by approximately 25%, and working to enhance the no-match results provided by the system. HUD Delays Proposed Energy Efficiency Standards  HUD is extending pending compliance dates for energy-efficiency standards on new construction of HUD and USDA-financed housing. The notice delays compliance dates by six months over the published compliance dates for covered projects in the following programs: FHA-Insured Multifamily, FHA-Insured Single Family, Public Housing Capital Fund, and Competitive Grants (Choice Neighborhoods, Section 202, Section 811).  The notice also delays the compliance date for Section 8 Project Based Vouchers (PBV) until April, 2026. Temporary Restraining Order Against Firings A federal court in Maryland has issued a temporary restraining order preventing the Trump administration from firing probationary employees at 16 federal departments and agencies, including the CFPB, FDIC and Treasury Department.  FHA Rescinds Policies FHA has issued a mortgagee letter rescinding three appraisal policies. The rescinded policies had been part of an initiative by the Biden Administration to address what former officials said was bias in the appraisal process. The announcement notes that rescinding the policies is a step in aligning with the Trump Administration’s goal to reduce unnecessary regulatory burden and foster long-term economic stability. ‘Digitalization’ Webpage for Community Banks  The OCC has created a new page on its website with a list of OCC rules, statements, and guidance that community banks can reference when pursuing “digitalization” efforts that aim to change a business model, provide new revenue and value-producing opportunities, or automate business processes. CDFI Fund to Downsize President Trump has issued an executive order directing the Community Development Financial Institutions Fund and six other government programs to reduce their personnel and operations to the minimum to needed to perform their statutory duties. The leaders of each governmental entity were directed to submit a report within seven days to the Office of Management and Budget “explaining which components or functions of the governmental entity, if any, are statutorily required and to what extent.” NCBA Announcements 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   MLK Jr. Had A Dream – So Did She The sky is the limit…Avoid complacency – lazy individuals seldom achieve their goals…Never dull your light so that someone else can shine. Irene Kyere has relied on these mantras throughout her career while rising to become Senior Vice President and Team Leader at Southern First Bank in Greensboro. She shared them with Livingstone College students during a recent visit to Salisbury.  While on campus, Irene met with the Credit Essentials Certificate class – a component of the NC Bankers Association’s Future Bank Leaders program – which encourages young people to consider a career in banking. The class is led by bank executives who explain the concepts of commercial banking, and perhaps more importantly, share stories of their own journeys to success – both the thrill of great achievements, and the resilience required to overcome enormous obstacles.  Read More ▶   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   After the Storm – Heroes of Hurricane Helene “It sounded like a freight train coming down the road.” “I thought, there’s been an explosion.” “The force behind it, the way it sounded, I thought it was going to swallow the house and we were all going to die.” Those are some of the initial reactions residents of Western NC had early on the morning of Sept. 27, 2024, when Category Four Hurricane Helene slammed into and traumatized entire communities. Showing no mercy, Helene didn’t discriminate based on status or occupation. Certainly, the banking industry and its employees of the region were not spared. Peter Gwaltney, President & CEO of the NCBA, was leading the Louisiana Bankers Association in 2004 when Hurricane Katrina hit, so he knew what needed to be done. “Katrina was a great learning experience. It's not the kind of thing anyone would want to go through, but I did learn some lessons,” Gwaltney said. “One was the power of communication.The first thing we did the day after Helene made landfall in the mountains was gather our board for a zoom meeting. Then I proposed to them that we stand up a relief fund through our foundation. And that’s what we did, because it’s in our culture as bankers and as bankers associations. When there's a need, whether it's tornadoes in Oklahoma, fires in California, or flooding anywhere else, we contact each other and ask how we can help.” Read More ▶   Last Call! NCBA Foundation Scholarship Application Deadline: Friday, March 21, 2025 The North Carolina Bankers Association Foundation is still accepting scholarship applications from high school seniors with a parent who is a full-time employee of an NCBA member bank, but the deadline is approaching quickly. Two $16,000 scholarships will be awarded during this year’s application cycle.  Each applicant must be a current high school senior who will receive their diploma during the 2024-25 school year.  Scholarship guidelines and application instructions are available online. The deadline for uploading applications and supporting documentation is Friday, March 21.  For more information contact John Sullivan at johns@ncbankers.org.    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 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 Compliance Management System Essentials - April 16 - 2 CRCM Credits CBS Spotlight SRM Provides Assistance and Insights for the Critical Decisions Ahead SRM is here to provide North Carolina bankers with assistance and insights for the critical decisions ahead. Among those decisions is how to manage your payments strategy and technology stack for the road ahead. SRM has helped hundreds of financial institutions around the globe optimize their card processing and payments programs. Their team has facilitated over 125 core, digital banking, and fintech conversions and upgrades over the last two years – from strategy to implementation and project management.  If your bank could use a partner that’s focused on your big picture and helping you achieve measurable results, then it’s the perfect time to contact SRM. SRM's services include: PAYMENTS ADVISORY Commercial Payments Consumer Payments Credit & Debit Card Portfolios Fraud Prevention & Analysis Instant Payments & Money Movement Market Entry & Development Product & Service Development TECHNOLOGY ADVISORY Artificial Intelligence Advisory Core & Digital Integration Core Processing Platforms Digital Banking Platforms STRATEGIC ADVISORY Compliance & Risk Digital Strategy Mergers & Acquisitions Navigation Organizational Design & Change Management Policy & Procedure Development Research, Analytics & Insights Business Growth Strategic Planning SOURCING ADVISORY Vendor Contract Negotiation Vendor Selection & RFP Support For more info on SRM’s offerings, please contact Dana Davis (ddavis@srmcorp.com). You can also visit SRM online at www.srmcorp.com or follow them on LinkedIn or YouTube.  Industry Update First Bancorp Announces Quarterly Cash Dividend he Board of Directors of First Bancorp (NASDAQ: FBNC), the parent company of First Bank, has declared a cash dividend on its common stock of $0.22 per share payable on April 25, 2025 to shareholders of record as of March 31, 2025. Richard Moore, Chief Executive Officer of First Bancorp, stated, "Our Company had a strong fourth quarter performance with meaningful increases in adjusted net income and adjusted EPS while maintaining strong capital, liquidity and credit quality.  We are pleased to continue distributing cash dividends to our shareholders, contributing to a valuable return on their investments." On the Lighter Side A bird doesn't sing because it has an answer, it sings because it has a song. -  Maya Angelou NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.