Tennessee Bankers

This Week Newsletter



September 05, 2017 - Issue No. 1735


Nine TBA Members Named to 'Best Banks to Work For' List

American Banker magazine published its fifth annual list of the 75 best banks to work for, with nine Tennessee Banker Association member banks making the distinguished list:
No. 6: Pinnacle Financial Partners, Nashville
No. 19: First Citizens National Bank, Dyersburg
No. 28: First Horizon National Corp., Memphis
No. 36: Community Bank, Brandon, Miss.
No. 46: First National Bank of Middle Tennessee, McMinnville
No. 57: Athens Federal Community Bank, Athens
No. 63: Bank of Tennessee, Kingsport
No. 68: Reliant Bank, Brentwood
No. 77: FirstBank, Nashville

These and other banks were celebrated for being employee-centric, offering programs and amenities like catered weekly lunches, wellness programs, anniversary celebrations, and a "pay it forward" charitable giving program. The publication's analysis was conducted with the Best Companies Group, which collects employee surveys and reports on policies and benefits. Click here to view the full list.

DOL to Delay Fiduciary Rule Exemption Effective Date

The Department of Labor last Thursday proposed to extend to July 1, 2019, the applicability date for certain exemptions to the fiduciary rule. The extension would apply to the best interest contract exemption, principal transactions exemption, and prohibited transaction exemption 84-24.

Comments on the proposed delay are due by Sept. 15. Read the proposal.

Fed's Powell: Supervisory Bar Remains High for Bank Boards

While the Federal Reserve recently announced a proposal to streamline its supervisory expectations for large bank boards of directors, Governor Jerome Powell said last week that regulators will continue to "expect much more of board directors than ever before."

The Fed's proposal, which was released earlier this month, clarifies the distinction between bank boards and senior management teams, and includes five criteria by which regulators will assess bank boards. The Fed's intention "is to enable directors to spend less board time on routine matters and more on core board responsibilities: overseeing management as they devise a clear and coherent direction for the firm, holding management accountable for the execution of that strategy, and ensuring the independence and stature of the risk management and internal audit functions," Powell said.

Powell noted that while the proposal directs most matters requiring attention of senior management teams instead of the board, directors will continue to receive MRAs in cases where board practices are at issue or where senior management teams have failed to sufficiently address issues in a timely manner.

U.S. Secret Service Implements New Counterfeit Currency Process

The U.S. Secret Service has implemented a new electronic counterfeit currency submission process available to all financial institutions. Banks are encouraged to utilize this resource, located at www.usdollars.usss.gov for all counterfeit submissions. Processing improvements allow electronic submission of the traditional SSF 1604 information for multiple notes and reduces paperwork to a single sheet by creating a bulk submission. Additionally, the website allows users to query suspect counterfeit notes themselves as well as provides resources on security features and counterfeit note detection.

CFPB Issues Detailed Summary of Latest TRID Changes

The CFPB released a detailed summary of the changes and clarifications to the TILA-RESPA integrated disclosures that it finalized early in July.

The summary provides a quick reference to the 500-page final rule, which covers tolerance provisions for the disclosed total of payments, exemptions from TRID for certain loans, applicability of the disclosures to co-op units and the sharing of disclosures, among other topics. The final rule also makes extensive technical corrections, many of which are addressed in the summary. Download the CFPB summary.

CFPB Announces 2018 Reg Z Dollar Thresholds

The Consumer Financial Protection Bureau announced 2018 changes in dollar thresholds for several Regulation Z provisions governed by the CARD Act, the Home Ownership and Equity Protection Act and the Dodd-Frank Act. The thresholds are based on changes in the Consumer Price Index.

For credit cards, the penalty fees safe harbor for 2018 will remain at $27 for a first late payment. The subsequent late payment safe harbor fee will remain at $38. The minimum interest charge disclosure threshold will also remain unchanged for 2018. The HOEPA loan threshold will increase slightly to $21,032, and the HOEPA fee trigger will be $1,052, effective Jan. 1.

For Qualified Mortgages, points and fees cannot exceed 3 percent of loans of $105,158 or more; $3,155 for loans between $63,095 and $105,158; 5 percent for loans between $21,032 and $63,095; and 8 percent for loans of less than $13,145. Read more.

Opening Business Accounts in Tennessee

Whether your bank opens one business account a week or several every hour, Opening Business Accounts in Tennessee is a must for deposit staff tasked with onboarding customers. Why? The Financial Crime Enforcement Network's (FinCEN's) final CDD regulation, published in the Federal Register on May 11, 2016, mandates big changes to the bank's policy and procedures related to account opening, specifically accounts for businesses. Your bank must comply no later than May 11, 2018. It will be here in no time.
 
Every employee responsible for onboarding new business customers and opening or modifying accounts for existing customers must have a basic understanding of business organizations in Tennessee. This state-specific program provides information about business organizations, documentation, ownership, and CIP and CDD. It lays the groundwork for in-bank training needed to implement the bank's specific policies, procedures, and processes.
 
This evening program takes places Sept. 25-28 in Kingsport, Knoxville, Jackson, and Nashville. Click here to register.

In-Bank Training Scheduled for Sept. 29

Join us for In-Bank Training: How to Train Staff Using Bank Policies, Procedures, and Forms and Disclosures. This workshop, which takes place Sept. 29 in Nashville's TBA Barrett Training Center, teaches techniques for conducting low-cost and high-impact compliance training in your bank. Whether you are responsible for training hundreds of employees at multiple branches or less than 10 employees at one location, this program gives you the tools you need to get the job done. With the gear-up for CDD and beneficial ownership just around the corner, your bank can't afford to miss this opportunity! Click here to register.

The Southeastern Institute for IRA Training Early Registration Deadline Tuesday, Sept. 5

While it may take years to build a confidence level where you can answer almost any question IRA thrown your way, The Southeastern Institute for IRA Training will raise your comfort level if you are a rookie and reinforce your knowledge if you have a higher level of experience. The program takes place September 19 & 20 at the Franklin Marriott Cool Springs, Franklin, Tenn. Register now and save before the early registration deadline Tuesday, Sept. 5. Also, if you haven't already, book your room at the Franklin Marriott Cool Springs—only a limited amount of rooms are available.

Welcome New TBA Associate Members

TBA welcomes new associate members Prochaska Quinn & Ferraro, P.C. in the category of legal services, and vCISO Services, LLC and Telecom Brokers in the category of information technology. Please thank these companies for their support of the Tennessee banking industry through membership. When evaluating vendor partners, review the list of all TBA associate members in our online directory.

2017 Membership Meetings

Thank you to the nearly 500 members who joined us across seven sites for our 2017 TBA Membership Meetings. View the photo recap.

TBA On the Road

  • We hope you had safe returns from Labor Day weekend.

See where TBA goes while "on the road" by following @TNBankers.

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