Tennessee Bankers

This Week Newsletter



May 25, 2018 - Issue No. 1820


TBA Hosts Successful 2018 Washington Conference

A record-setting number of bankers, associate members, and TBA staff—nearly 100—attended TBA's annual Washington Conference last week. Led by TBA's Government Relations Committee Chairman Jim Rieniets, President/CEO, InsBank, highlights of the conference included hearing from FDIC Chairman Martin Gruenberg and senior staff from the CFPB, OCC, Treasury and FinCEN. Participants also visited with Tennessee's Congressmen and Senators as well as representatives from ABA, ICBA and CSBS. View photo recap.

The overall tone in Washington this year was much more optimistic than in years past with Congressmen nearly certain the House would soon pass S.2155, the regulatory reform bill approved by the Senate in March. Regulators were also optimistic about the likelihood of joint agency efforts to modernize both the Community Reinvestment Act and the Bank Secrecy Act.

The Tennessee coalition also advocated for implementation of cybersecurity standards across the board and leveling the playing field with credit unions. Although taxation of credit unions is not on the table, much attention is being giving to their expansion of powers and need to file Form 990s and disclose executive compensation.

House to Vote on Reg Relief This Week

During TBA’s Washington Conference, House leadership announced they will take up S.2155 this week, as early as Tuesday. During Congressional visits with TBA members last week, Tennessee’s Congressmen were supportive of the measure and certain it would receive positive votes from members of both parties.

It is expected the House will pass the same version the Senate approved in March, which means it would then go directly to President Trump for his signature. This would mark passage of the first comprehensive bipartisan regulatory reform since the Dodd-Frank Act was enacted in 2010.

FinCEN Temporarily Suspends Beneficial Ownership Requirements for Automatic Renewal Products

FinCEN announced last Wednesday that it is temporarily suspending the application of the beneficial ownership requirements for certificate of deposit rollovers and loans that renew automatically.

The relief is retroactive to the May 11 compliance date and will continue until August 9, 2018. During that time, FinCEN will re-evaluate the requirement to determine if more permanent relief is needed. Read more.

CFPB Updates TRID Compliance Guides

The CFPB last week issued new versions of the small entity compliance guide for the TILA-RESPA integrated disclosures, as well as the guide to the loan estimate and the closing disclosure, the two TRID forms. All guides reflect a recently issued final rule that addressed the TRID "black hole" problem.

There are two versions of each guide, one that reflects both 2017 and 2018 TRID updates, and one that only reflects the 2018 update. (Early compliance with the 2017 TRID amendments is optional between now and Oct. 1, 2018.) Access the revised guides.

Fed Nominees Support Reg Reform, Maintaining Safety and Soundness

In testimony before the Senate Banking Committee last Tuesday, Federal Reserve Board nominee Michelle Bowman highlighted the critical role that community banks play in growing the economy and offered support for more closely tailored regulation for these institutions. Bowman, who has been nominated to fill a seat on the board reserved for a community banker, is a former bank executive at Farmers & Drovers Bank in Council Grove, Kan., and her currently serves as Kansas state bank commissioner.

In addition to regulatory relief for community banks, both Bowman and Fed vice chairman nominee Richard Clarida also expressed their openness to modernizing CRA, as well as their support for the normalization of the Fed’s balance sheet.

With regard to capital and liquidity requirements for the nation’s largest banks, Clarida assured lawmakers that he would not sacrifice gains in safety and soundness in any effort to simplify or loosen these requirements.

Instructor Ken Golliher Provides BSA Insight

From BSA/AML Compliance School instructor Ken Golliher: "On May 11 (the mandatory compliance date for the due diligence regulation), the FFIEC published a press release with links to the new 'due diligence' and 'beneficial ownership' examination procedures. While it would have been nice to have them months ago, they still represent a valuable tool for your institution. I encourage you to go through them, honestly evaluating your new compliance program on each point they raise. If you find a shortfall, fix it now, even if it requires you to go back to the board of directors and amend a policy they just adopted.

To be clear, the FFIEC has not updated the entire Examination Manual. They have not announced a time frame in which they expect that to be done, but I assume it will be late in 2018. In addition, on Wednesday, May 16 FinCEN published FIN 2018-R002. It may affect how you choose to handle 'renewal' accounts in the next 90 days."

TBA Webinar Examines How the Changing Economic Landscape Affects Deposit Sensitivities and Liquidity Levels

We are in the midst of a rising rate environment given the Fed hikes since year-end of 2015. While we may be out of practice (or even lack any real experience) in dealing with rising rates, we can rest assured that there is some shift of our deposit base—but when, how much, and what will ultimately cause it, remains uncertain.

In this webinar, Joe Kennerson discusses the importance of utilizing quantitative and qualitative data to support the stability of your deposits and key pricing decisions and how your depositors impact how you manage your liquidity, and vice versa. This webinar takes place June 6 from 9-11 a.m. CST.

Click here to register.

Welcome New Associate Members

TBA welcomes new associate members Oculus Software in the category of Software/Computers, and Hovde Group, LLC in the category of Consultants. Please learn more about each of our associate member companies by visiting our online directory of associate members and thank them for their support of the Tennessee banking industry through membership.

TBA On the Road

  • Stacey Langford joins endorsed partner KeyState for their 4th annual Bank Captive Peer Summit.
  • Graduate School of Banking at LSU kicks off in Baton Rouge with 73 Tennessee students attending.
  • TBA hosts its annual State Association Reception at the Graduate School of Banking at LSU.
  • Bankers from Tennessee, Mississippi, Virginia, and Louisiana convene in Nashville to take part in The Southeastern School of Commercial Lending.
  • Loan Assistant and Loan Processor Workshop takes place in Nashville.

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