Tennessee Bankers

This Week Newsletter

February 08, 2016 - Issue No. 1606

TBA Legislation on Senate Floor on Monday

TBA's legislation to 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 will be voted on by the full Senate Monday afternoon. The legislation, SB 1972, sponsored by Sen. Tracy passed the Commerce Committee last Tuesday, Feb. 2, with seven "yes" votes and one present but not voting. 
The House version of the bill, HB 1894, sponsored by Rep. Hazlewood will come before the Civil Justice Subcommittee on Wednesday.  

GSB at LSU Alumni Breakfast Scheduled During Credit Conference

All alumni from the GSB at LSU are invited to attend a breakfast on Friday, Feb. 26 at 7:30 a.m. at the Omni Nashville. The breakfast will be held on the 3rd floor in the Cumberland 3 room. This is an excellent opportunity to network with other graduates, as well as hear an update on the happenings at LSU.
The breakfast is being held in conjunction with the annual TBA Credit Conference, but attendance at the conference is not required to attend the breakfast. To RSVP, please contact Penny Powlas.

Tennessee GOP Rep. Fincher to Retire

Tennessee GOP Rep. Stephen Fincher announced last Monday, Feb 1 that he will retire from Congress at the end of his term. Fincher is a member of the 2010 GOP that took back control of Congress just two years after President Barack Obama was elected. Rep. Fincher was a steadfast advocate for Tennessee banking and held a prominent role as a member of the House of Financial Services committee.

Bankers Express CECL Concerns During FASB Roundtable

A delegation of bankers and representatives from industry trade groups participated in a long-awaited roundtable discussion last Thursday, Feb. 4, with FASB board members about the board's proposed Current Expected Credit Loss model for loan loss accounting. 

Among bankers' chief concerns with CECL is that it would require banks to record a provision for credit losses the moment they make a loan, which could cause a projected 30 to 50 percent hike in loan-loss reserves.

Other key points about CECL that bankers addressed during the sometimes heated conversation included the need for further clarification on the expectations and assumptions auditors will operate under when assessing banks' loan loss models, a more specific life-of-loan concept, and the scalability of the standard to community banks of varying sizes.

At the conclusion of the meeting, regulators present expressed their commitment to making the CECL standard work in the supervisory process.

US House Passes Municipal Bond Bill

The House last Monday night passed H.R. 2209 by a voice vote. The bipartisan bill further expands the ability of banks to count certain municipal bonds as high-quality liquid assets under the Liquidity Coverage Ratio. The measure came to the floor after passing the Financial Services Committee by a near unanimous vote.

US House Panel Passes Bill by Rep. Roe to Stop Fiduciary Rule

By vote margins of 22 to 14, the House Education and Workforce Committee last Tuesday, Feb. 2, approved two bipartisan bills – one sponsored by Rep. Phil Roe (R-TN) – that would provide alternatives to the Labor Department's rule redefining who counts as a fiduciary under ERISA.
Roe's legislation, the Affordable Retirement Advice Protection Act (H.R. 4293), would amend ERISA. The other bill, H.R. 4292, was introduced by Rep. Peter Roskam (R-IL) and would address the issue via the Internal Revenue Code.

FDIC Updates Video Resources for Interest Rate Risk

The FDIC last week released updated videos to help bank directors, management, and staff better understand and manage interest rate risk. Topics covered by the videos include current industry trends, responsibilities of the bank's board and management team, types of interest rate risk, different risk measurement systems, key modeling assumptions, internal controls, and independent review. To access the videos, click here.

Compliance Alliance Hot Topic Question of the Week

Q: The LE now replaces the right to receive an appraisal form. Do banks need to have a form that the customer signs acknowledging?

A: There is no requirement that your customer sign or acknowledge receipt of the appraisal disclosure notice contained in the Other Considerations section of the LE. The appraisal notice contained in the LE satisfies the right to receive an appraisal notice requirements for Higher-priced mortgage loans (HPML) under Regulation Z and for loans secured by a first lien on a dwelling under Regulation B. Neither the Reg Z HMPL provisions or the Reg B provisions require that the appraisal notice be signed by the customer. That being said, separate appraisal notices (not built into the TRID disclosures) often included signature lines to demonstrate compliance but again, that signature is not a regulatory requirement.

Join us for a free one-hour webinar to review the benefits of Compliance Alliance. This virtual tour will provide an in-depth look at each of the tools and resource categories available to subscribers. Webinars are offered each Tuesday and Thursday.  Please contact Stacey Langford with questions.

Young Bankers Leadership Convention Sponsorship Opportunities

Since 1960, TBA's Young Bankers Division has aided in the professional growth and network development of banking's future leaders. The signature event of the Young Bankers Division is the Leadership Convention, this year scheduled for April 24-26 in Knoxville, TN. Sponsoring this event is a great way to demonstrate your company's dedication to the strength of banking in our state, along with giving you the opportunity to develop long-term relationships that will benefit your business. To learn more about the event and various sponsorship opportunities, contact Stacey Langford. The room block and event registration is available now online.  

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

Monday, Feb. 8 is the last chance to register for The Southeastern School of Consumer Credit at the discounted tuition rate. This intermediate-level, one-week 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, in Nashville.

Writing an Effective Credit Memorandum Set for Feb. 17

It is more important than ever to effectively document your credit memorandums to include relevant information on the status of your customers' relationships with the bank. In Writing Effective Credit Memorandums you will cover the recommended materials, judgments, and documented facts in the credit memo that you will need to substantiate your findings.
This one-day workshop takes place Feb. 17 at the TBA Barrett Training Center in Nashville. The early registration deadline is Feb. 9. Click here to register.

Passing of Michael Ayer

Michael Ayer, Chief Credit Officer at First Farmers and Merchants and past TBA Credit Conference Chairman, died on Saturday, Jan. 30. Michael was a great advocate for the industry and will be missed. Please keep his family, friends, and colleagues in your prayers. An obituary can be found here.

TBA On the Road

  • TBA hosts the CFO/Controller Forums.
  • Colin Barrett conducts bank visits in East Tennessee.

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

@TNBankers or  #TBAontheroad

In this Issue

Past Editions