Tennessee Bankers

This Week Newsletter

January 11, 2016 - Issue No. 1602

General Assembly Reconvenes on Tuesday

Tennessee lawmakers reconvene at noon on Tuesday, January 12, for the second half of the 109th General Assembly. Legislators will likely move quickly in an effort to adjourn and focus on the upcoming elections. There are several key issues, however, they must tackle. One of the biggest will involve the state having a surplus of tax revenue (expected to exceed $600 million) and where to allocate those funds. This ties in to another key issue – how to fund the state's highways and whether to use a portion of the surplus for this or increase the gasoline tax. 
Other priority issues for lawmakers include: reducing or eliminating the Hall Income Tax. Although elimination does not seem to be on the table, it is likely that a reduction in the tax could pass. Education reform will also be a focal point, including whether the state should overhaul its school funding system and whether it should allow students to use public money through a voucher system to attend private schools.

TBA Hosts Bi-weekly Legislative Update Calls

The best way to stay on top of banking issues during legislative session is participating on TBA's legislative conference calls hosted every-other Friday by the TBA government relations team. All calls begin at 2:30 p.m. CT and last approximately 30 minutes. The first call occurred last Friday Jan. 8, and the next call is scheduled for January 22. 
Coverage of top issues likely to unfold during legislative session will include reforms to financial elder abuse laws; whether local governments and third parties should be in the business of making loans for energy efficient improvements to homes; and removing the super priority status of HOA liens. If you would like to participate in these calls, please contact Amy Heaslet.
Plus, save the date for these important TBA government relations events:
February 24: Legislative Reception
March 8: Young Bankers Day on the Hill
May 9 -11: Washington Conference

2015 BankPac Campaign Breaks New Records

n 2015, TBA BankPac raised $213,820 from 129 contributors. Thanks to strong support and outreach from BankPac Committee Chairman Jim Rieniets, InsBank, Nashville, and committee members, this was the most money ever raised in a single year. Previous records were set in 2014 and 2013, raising $206,499 and $202,733, respectively. 2015 was also a record-breaking year for the number of contributors to participate, with 121 banks, seven associate members, and the association staff giving to BankPac.
For a list of those who contributed to BankPac in 2015, click here.

FASB Formally Closes Door on Mark to Market Standard

The Financial Accounting Standards Board last Tuesday, January 6, issued its final "Recognition and Measurement" accounting standard with few changes made to bank accounting. The new standard comes over five years after the initial proposal required marking all financial assets and liabilities to market on the balance sheet.

Under the new standard, only changes in the fair value of equity investments will be required to be recorded through income. The standard will also eliminate instances in which gains are recorded merely because a company's credit rating was downgraded. Banks that do not qualify as "public business entities" may also eliminate their current disclosures of fair value, though PBEs must comply with a more stringent disclosure requirement.

The standard will take effect in 2018, though early adoption will be allowed. Click here to read more.

Fed Rate Hikes to Occur 'Over the Next Few Years'

The Federal Open Market Committee will move gradually when raising the target range for the federal funds rate from near zero to 0.25 to 0.5 percent, the first rate hike since 2006, according to the minutes from the committee's Dec. 15-16 meeting.

The committee said it would "carefully monitor" inflation and would "slow or accelerate the pace of normalization" to accommodate economic activity. Click here to read the minutes.

Archived Webinars for Purchase

Purchasing archived webinars is a great way to build your bank's training library. With approximately 120 webinars offered each year, there is a wealth of professional development and training resources available through the webinar format. Archived webinars presented by our webinar partner, Financial Education, are now offered as digital downloads rather than CD format. After purchasing an archived webinar, the link is made available and can be easily shared with anyone in your institution. 

Welcome New Associate Members

TBA welcomes new associate members First Protective in insurance and investment services, and MSA Digital Inc in information technology. Please thank these companies for their support of the Tennessee banking industry through membership and learn more about all of TBA's associate members in our online directory.

Commercial Lending Programs Available

There are still spaces available for The Southeastern School of Advanced Commercial Lending, Feb. 1-3, and Essentials of Commercial Lending, Feb. 4 & 5. Both classes will be held at the TBA Barrett Training Center in Nashville. While the discount tuition deadline for TSSACL has passed, and the tuition is now $1,275, the early registration deadline for Essentials of Commercial Lending is Jan. 21. The deadline for hotel reservations for Essentials of Commercial Lending is Jan. 14.
If you have relatively new commercial lenders, the Essentials of Commercial Lending is a great opportunity for them to learn the basic concepts and techniques of commercial lending, including those that help identify the underlying business reasons for borrowing. If you have commercial lenders with a minimum of three years of commercial lending experience or are graduates of The Southeastern School of Commercial Lending, this is an opportunity for them to go to the next level of learning about cash flow analysis and loan structure, commercial real estate lending-financing income producing properties, new approaches to predicting portfolio credit quality and managing portfolio credit risk, and improving portfolio profitability and credit performance. 

Early Registration Deadline for In-Bank Training Program Feb. 2

In-bank training is essential to ensure compliance with board-approved policies and departmental operating procedures. Understanding the content of bank forms and disclosures provided to depositors and borrowers is essential to compliance and customer relations. Training on bank-specific information must be done in the bank by knowledgeable employees.
Through In-Bank Training: How to Train Staff Using Bank Policies, Procedures, Forms, and Disclosures, participants will learn techniques for conducting low-cost and high-impact in-bank training. Whether you are responsible for training hundreds of employees at multiple branches or less than 10 employees at one location, this workshop gives you the tools you need to get the job done. The program will take place Feb. 9 at the TBA Barrett Training Center in Nashville.
Click here to register. Hurry–the early registration deadline is Feb. 2.

Don Mullican Passes Away

Don Mullican, former president of two community banks and group president for First American National Bank, passed away on January 2. Don was a former TBA board member and outspoken advocate for the banking industry. Click here to read his obituary.

TBA On the Road

  • TBA's Government Relations teams sets up headquarters at the State Capitol for the 2016 Legislative Session.
  • TBA staff conduct their annual strategic planning meeting.

See where TBA goes while "on the road" by following

@TNBankers or  #TBAontheroad