Tennessee Bankers

This Week Newsletter

April 11, 2016 - Issue No. 1615

Senate, House Overwhelmingly Pass TBA's Condo Lien Legislation

TBA's legislation (SB 2397 / HB 2401) to protect lenders' interests during foreclosure by a condominium association for delinquent dues overwhelmingly passed on the Senate and House floors last week. 
Current law provides HOAs a super-priority lien that could extinguish a first mortgage (21 states have similar laws). Despite significant efforts by opposition groups, namely the Community Association Institute from Washington, DC, to preserve condo associations' super-priority status, House and Senate members voted 88-4 and 26-0-5, respectively, in support of TBA's legislation. 
The strong support shown by legislators could not have been possible without the efforts made by Tennessee bankers. Thank you to all who reached out to your legislators and encouraged them to support SB 2397 and HB 2401.
TBA President Colin Barrett emailed Tennessee bankers after the Senate bill passed thanking them for their efforts and recapping the vote counts and the work TBA's government relations team has put forth in the last several weeks to pass this legislation. Click here to read Barrett's email.
The legislation will now go to the Governor for his signature. Once signed, which is expected, the law will take effect June 1, 2016. TBA will then become one of the first states of the 22 states with a super-priority status for condo association liens to remove their super-priority and protect lenders' interests. Click here to read the bill.

FDIC Directors Outreach Seminar Takes Place April 26

The Dallas Region of the Federal Deposit Insurance Corporation and the Tennessee Bankers Association are jointly presenting the 2016 FDIC - Directors' College/Banker Outreach Program on April 26 in Nashville. This important program will give attendees the opportunity to network with state and federal regulators to learn about current and emerging issues and trends facing the financial services industry. Topics include what is going on within our state and what it means to our banks and the overall commerce industry. Program designers have closely tied the content to feedback received from bankers and suggestions from field supervisors within the state.

The early registration deadline is April 12. Click here to sign up.

Fed's Final Rule Expands HQLA Definition

The Federal Reserve on April 1 issued its final rule counting certain municipal securities as high-quality liquid assets under the Liquidity Coverage Ratio. In finalizing the rule, the Fed further expanded the ability of state and municipal bonds to count as HQLA securities insured by a bond insurer provided the underlying security would qualify as HQLA without insurance.

Due to the role banks play as investors in municipal markets, the proposed expansion of the HQLA definition is expected to be beneficial for all banks—not just those covered by the LCR. Click here to read the final rule.

FS-ISAC Outlines Top Risks to Community Banks

FS-ISAC covers the latest top risks to community institutions in its latest risk summary. The report also covers how to prepare for a terrorist attack and how to prevent cyber-attacks. 
Through our partnership with ABA and FS-ISAC, TBA electronically distributes the Community Institution & Association Risk Summary weekly to members at no charge. To be added to this list, please email Steve Curtis.

Candidate Filing Deadline Passes

The filing deadline for candidates in the November elections was last Thursday. To see the list of Tennessee qualifying candidates for state and federal races click here.

Ncontracts Endorsed by TBA

TBA last week announced the Association's endorsement of Tennessee-based Ncontracts' full suite of risk management solutions. In today's increasingly complex and regulated environment, we know how critical it is to have a trusted partner to assist you with vendor management, business continuity planning, cybersecurity management, findings, compliance, and risk management.
Ncontracts is an industry leader in their field and has a history of support and engagement with the TBA. Please take a moment to review the products and services offered by Ncontracts or reach out to Cathy Isaacs to evaluate how their products can be used to protect the most critical business operations in your bank. 

Citizens Tri-County Bank Announces Acquisition

Dunlap-based Sequatchie Valley Bancshares Inc. will enter Franklin County with its acquisition of Decherd-based Franklin County UNITED Bancshares Inc. According to an April 1 press release, Franklin County UNITED Bank ($77.8 million) will be absorbed by Sequatchie's Citizens Tri-County Bank ($692.3 million). The merger is expected to close in the third quarter, pending regulatory approvals. Franklin County UNITED's shareholders voted in its favor on March 31. The acquired bank's employees will be retained.

Deborah Cole Discusses Importance of Mentoring Teens

Deborah Cole, president and CEO, Citizens Savings Bank and Trust Company, Nashville, recently spoke at the ABA's National Conference for Community Bankers. In this short clip, Cole discussed her love of mentoring teens and the importance of teaching our younger generation.

The Southeastern School of Commercial Lending Early Registration Deadline Approaching

The early registration deadline for the The Southeastern School of Commercial Lending is May 2. This is one of three annual intermediate-level lending schools that are hosted by TBA and cosponsored by the Georgia, Louisiana, and Mississippi Bankers Associations. Classes are held at the TBA Barrett Training Center from May 22-27. This is a residence school, so all participants are required to stay at the Loews Vanderbilt Hotel during the week. Attendance is limited to 65 participants, so sign up your lending employees today

Submit Your Bank's Community Involvement, News, and Promotions to TBA

We want to know the latest news about your bank for possible inclusion in The Tennessee Banker magazine. Please submit text and photos to Tyler Nelson about the following items: 

  • Job promotion announcements
  • Bank celebrates milestone or receives an award
  • Opening a new branch
  • Community involvement

TBA On the Road

  • TBA Past Presidents will hold their annual gathering.
  • TBA SVP of Membership, Stacey Langford, will visit members in East Tennessee.

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

@TNBankers or  #TBAontheroad

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