Tennessee Bankers

This Week Newsletter

February 01, 2016 - Issue No. 1605

Senate Committee to Consider TBA Legislation on Tuesday

The Senate Commerce and Labor Committee on Tuesday will vote on TBA's first piece of legislation to move through the legislature this year – SB 1972. The legislation would increase the amount from $2,500 to $15,000 of a check that a bank may negotiate if written to a deceased person where no estate is open or one has already closed. It would also increase the amount up to $15,000 that a bank may pay to a personal representative for funeral expenses or designated creditors when there is no executor or administrator of the estate.
TBA's government relations spoke to members of the Senate Commerce Committee and do not expect opposition when SB 1972 is heard on Tuesday.

Fed Holds Off on Rate Hike

The Federal Open Market Committee decided last Wednesday, Jan. 27, to keep rates at their 0.25 to 0.5 percent target, citing slow economic growth in the new year. Inflation rates running below the committee's 2-percent goal, a continued decline of energy prices and prices of nonenergy imports, as well as slower-than-expected labor market gains prompted the unanimous decision.

The committee said it would "carefully monitor" inflation and "global and economic and financial developments," and reiterated its expectations of "only gradual" rate increases as economic improvements permit. 

Federal Deficit Expected to Grow

The budget deficit this year will grow as a percentage of GDP for the first time since 2009, rising to $544 billion and 2.9 percent of GDP, according to a report last week by the Congressional Budget Office. The deficit will be $130 billion higher than the CBO projected last year due to congressional action in late 2015 to make several annually renewed tax provisions permanent.

The CBO projected outlays to rise by 6 percent this year to $3.9 trillion, while revenues grow by 4 percent to $3.4 trillion. With interest rates beginning to rise, the CBO said the cost of net interest on U.S. debt would grow by 14 percent this year while remaining below its long-run level as a share of GDP.

Over the next decade – through 2025 – the CBO projected cumulative deficits of $8.5 trillion. To read more, click here.

January 2016 Regulatory Bulletin Now Available

The January 2016 edition of the Regulatory Bulletin is available by clicking here. The Bulletin covers all federal regulatory actions of the past month, including notices and summaries of proposed and final rules as well as issuances of the agencies' regulatory agendas. TBA distributes the bulletin to an email list of interested members. If you would like to receive the Regulatory Bulletin directly in your inbox, contact Penny Powlas.

Pinnacle, Avenue Announce Deal

Pinnacle Financial Partners, Inc. and Avenue Financial Holdings, Inc. jointly announced last Thursday the signing of a definitive agreement for Avenue to merge into Pinnacle. The proposed merger of Avenue with and into Pinnacle is expected to close either late in the second quarter or early in the third quarter of 2016. 

Fed Webinar on CRA Community Development Credit – Feb. 18

The Federal Reserve will hold a free webinar on Feb. 18 at 1 p.m. CST to provide insights on how community development activities are credited in Community Reinvestment Act examinations.

During the webinar, senior Fed staff will provide an overview of what qualifies as community development activities, cover geographic requirements, and review best practices for community development. Fed staff will also answer questions during the webinar. To register, click here.

Sr. Compliance Officer Forums

If you are the senior compliance officer for your bank, you need to stay up-to-date on all compliance issues affecting financial institutions. The Senior Compliance Officer Forums provide an opportunity to benefit from the skills, experience, expertise, and perspective of your peers. The second of four sessions for the 2015-16 year is scheduled for Thursday, Feb. 18. Led by Connie Edwards, Banc Compliance Group, LLC, each session is focused on current topics of concern within the compliance world. Email Debbie Brickles for more information on joining this forum. TBA also offers forums in the areas of CEO, CFO, Senior Lenders, HR, and IT/Operations.

The Southeastern School of Consumer Credit Discount Tuition Deadline is Feb. 8

The Southeastern School of Consumer Credit is an intermediate-level, one-week school that focuses on the major issues consumer lending managers face. The curriculum addresses the managerial aspect of consumer lending operations, especially how the bank's loan portfolio can increase profitability and improve competitive positions. This school is designed to increase knowledge of consumer lending as a retail banking function and a source of bank income. The Southeastern School of Consumer Credit will convene on Sunday, March 6, and the deadline for registering at the discount tuition is Monday, Feb. 8. 
If you have lenders in your institution that need training in this area, or someone who could use a refresher on what is happening in the consumer lending arena, enroll today to take advantage of discount tuition.

Learn More About TBA's Bank Captive Program

TBA's most recent endorsed partner, KeyState Captive Management, will host a complimentary webinar to introduce their Bank Captive Program to Tennessee banks on February 2 at 10 a.m. CST. This program allows banks to form a wholly owned captive insurance company to finance risks in a tax advantaged way. The program has been endorsed by 19 state banking associations, and has participating banks from 13 states (including Tennessee) and seven fed districts. The call will overview the structure, the types of insurable risk the captive can include, and the potential tax savings for prospective institutions that meet certain criteria. To access the webinar or learn more, please contact Stacey Langford

Welcome New Associate Member

TBA welcomes new associate member Main Street, Inc. in the category of check printing. Please thank this company for their support of the Tennessee banking industry through membership and learn more about all of TBA's associate members in our online directory

TBA On the Road

  • TBA hosts The Southeastern School of Advanced Commercial Lending and Essentials of Commercial Lending.

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

@TNBankers or  #TBAontheroad