Tennessee Bankers

This Week Newsletter

June 13, 2016 - Issue No. 1624

Gordon Majors Installed as 2016-2017 TBA Chairman

Delegates to the 126th Annual Meeting of the Tennessee Bankers Association, held last week at the Belmond Charleston Place in Charleston SC, elected new officers and directors during the Tuesday morning business session. The bankers join existing board members to guide the association in 2016-2017.
Gordon Majors, president and CEO, The Hardin County Bank, Savannah, was installed as the new chairman of the TBA in ceremonies during the closing banquet on Tuesday evening. He accepted the gavel from the 2015-2016 chairman, David Verble, president and CEO, Citizens National Bank, Sevierville.
More than 650 members of the state's banking industry, associate members, and their guests attended the convention.
Executive officers elected for 2016-2017 are:

  • Chairman – Gordon Majors, president and CEO, The Hardin County Bank, Savannah
  • Chairman-elect – Lee M. Moss, president, Franklin Synergy Bank, Murfreesboro
  • Vice Chairman – John Muse, chairman, president and CEO, Farmers State Bank, Mountain City
  • Immediate Past Chairman – David Verble, president and CEO, Citizens National Bank, Sevierville

Delegates to the convention also elected directors from each of the three grand divisions of the state to serve three-year terms on the TBA board.  New directors are:

  • East Tennessee – George Shirley, chairman, president and CEO, Citizens Bank and Trust Company of Grainger County, Rutledge
  • Middle Tennessee – Bill Nigh, regional CEO, The Bank of Nashville, Nashville
  • West Tennessee – H. McCall Wilson Jr., president and CEO, Bank of Fayette County, Piperton

 Congratulations to these bankers!

CFPB Releases Small-Dollar Loan Rule

The CFPB on June 2 released its payday, title, and high-rate installment loan proposal aimed at curbing predatory lending practices. 
Although principally targeted at payday lenders, the rule would cover all loans with a term of 45 days or less as well as loans with a term longer than 45 days if the all-in APR exceeds 36 percent and they are repaid directly from a borrower's account or secured by a vehicle.
The rule contains several exclusions including purchase money loans; loans secured by real property or a dwelling; credit cards; student loans; nonrecourse pawn loans; and overdraft services and lines of credit. 
For transactions subject to the rule, lenders must consider the borrower's ability-to-repay by verifying income, debt obligations and housing costs; forecasting basic living expenses; and projecting customer's income and expenses over the term of the loan. The rule contains a "safe harbor" from these ability-to-repay calculations that includes a $500 cap on the first short-term loan and lower caps on subsequent loans. 
The rule also limits how many times a borrower can obtain covered loans.  A creditor will be limited to 3 loans taken out within 30 days of the last extended loan, and each subsequent loan must be for a smaller amount. A fourth loan will not be allowed if requested within 30 days of repaying the third.
Although the rule is not expected to have a significant direct impact on banks' products or current practices, it is expected to drive many in the payday and title loan industries out-of-business, leaving a gap in the marketplace. TBA is working with its members and regulators to find a workable way banks can make small-dollar loans in a cost-effective, regulator-approved manner.

Hensarling Releases Plan for Dodd-Frank Overhaul

House Financial Services Committee Chairman Jeb Hensarling (R-TX) last Tuesday, June 7, announced a proposal—The Financial Choice Act—that would roll back the Dodd-Frank Act's regulatory regime and allow banks holding high capital levels to be exempt from certain regulatory requirements of Dodd-Frank and Basel III. 

To take advantage of the regulatory exemptions under the Financial Choice Act, banks would need to have a composite CAMELS rating of 1 or 2 and maintain a 10 percent nonrisk weighted leverage ratio.   

Hensarling's plan also replaces Dodd-Frank's Orderly Liquidation Authority provision with a new chapter of the Bankruptcy Code designed to accommodate the failure of a large, complex financial institution, repeals the authority of the Financial Stability Oversight Council to designate firms as systemically important and restricts the Federal Reserve's ability to make discounted loans or bail out financial firms or creditors. In addition, Hensarling's proposal would reform the CFPB, impose enhanced penalties for fraud or deception and create greater opportunity for investment by repealing the Volcker Rule and other DFA provisions limiting capital formation.
Legislative language for the Financial Choice Act has not yet been released but is expected to be the week of June 20. Click here to read Hensarling's speech.

TBA Offers Tips for Stopping Elder Abuse

In recognition of World Elder Abuse Awareness Day on June 15, the TBA has developed a customizable press release member banks can use to educate senior customers and their caregivers on the steps they can take to safeguard their money and personal information against the thread of fraud. Download the customizable release here.

TBA Membership Meetings Coming Soon

Coming to seven regional locations in August, Membership Meetings are a great way to connect with peers and TBA staff while learning more about TBA priorities and initiatives.  Membership Meeting luncheons are from 11:30 a.m. – 1:00 p.m. and held respectively August 15-19 in Chattanooga, Manchester, Nashville, Jackson and Memphis, and August 24-25 in Kingsport and Knoxville. Save the date and plan to join us for the locations nearest you! Registration is now open.

Sponsorship opportunity! TBA Membership Meetings collectively draw attendance from the majority of the banks in Tennessee. Sponsorship of the meetings offers outstanding exposure for your brand. Contact Stacey Langford to inquire about opportunities.

Resources for Understanding Upcoming FDIC Assessment Changes

When the FDIC released their final rule on for assessing deposit insurance premiums on banks with under $10 billion in assets in April 2016, they estimated that 93 percent of small banks will see somewhat lower assessments, while the remaining 7 percent will see increases. Under the rule, assessment rates will be calculated using financial measures and supervisory ratings derived from a statistical model estimating the probability of failure over three years. The final rule will take effect beginning the quarter after the FDIC's insurance fund reaches 1.15 percent, which is expected to occur in the third quarter of 2016. For more about this rule, read the ABA staff analysis or visit the FDIC webpage covering upcoming changes to assessments.

June 13 Early Registration Deadline for The Southeastern School of Banking

The Southeastern School of Banking (TSSB) has served bankers since its organization in 1939, with an 80-hour, intermediate-level curriculum focused on critical banking functions, their interrelationships, and determinants of profitability. TSSB is an intensive general banking school, held at Belmont University, that consists of dual one-week resident sessions over two years. The early registration deadline is June 13. Click here to sign up. Invest in your bank's future by enrolling qualified candidates in this year's session.

ABA Training Opportunities

Tennessee Bankers Association is your local ABA Training Provider, and through the American Bankers Association you have access to a very comprehensive source for training and education. ABA Training includes extensive learning opportunities suited to specific job roles, in both facilitated and self-paced online formats. By being a member of TBA you qualify for member pricing for any of these programs. Please support TBA by registering through this portal for ABA education. Click here to learn more.

Follow TBA on Social Media

Tennessee Bankers Association is on social media. Give us a follow for the latest in all TBA news, events and much more!

25 Tennessee Bankers Graduate GSB at LSU

On June 3, 205 bankers from 15 states and Mexico received graduation diplomas from the Graduate School of Banking at Louisiana State University. Sponsored by the Tennessee Bankers Association and 14 other southern state bankers associations in cooperation with the Division of Continuing Education at LSU, the banking school requires attendance on campus for three years, with extensive bank study assignments between sessions.

Congratulations to the following 25 TBA members and Tennessee-based regulators who received diplomas among the Class of 2016:

  • Tammy Begley, Cumberland County Bank, Crossville
  • Jon Bell, First Vision Bank of Tennessee, Manchester
  • Edward Black, TN Department of Financial Institutions, Cookeville
  • Philip Clemmons, Wilson Bank & Trust, Cookeville
  • Shanna Cochran, Franklin County United Bank, Decherd
  • Allan Crooks, Volunteer State Bank, Portland
  • Courtney Delano, First National Bank of Pulaski, Pulaski
  • Christopher Doughty, FDIC, Hermitage
  • William T. Gurley, Reelfoot Bank, Union City
  • Timothy Hale, Reliant Bank, Gallatin
  • Chase Jordan, Carroll Bank and Trust, Camden
  • Larry Lance, First National Bank of Pulaski, Lewisburg
  • Mary Ledford, First Vision Bank of Tennessee, Tullahoma
  • Andrew Long, BancorpSouth Bank, Jackson
  • Matthew Means, Bank of Putman County, Cookeville
  • Jeffrey Mitchell, Bank of Ripley, Ripley
  • Ron Powell, Citizens Bank of Lafayette, Lafayette
  • Laura Rivera, The Farmers Bank, Portland
  • Anthony Valentino, TN Department of Financial Institutions, Knoxville
  • Amanda Vinson, Planters Bank Inc., Adams
  • Jeffrey Vowell, Commercial Bank & Trust Co., Union City
  • Steven Walker, Citizens Bank, New Tazewell
  • Andrew West, Wilson Bank & Trust, Lebanon
  • Benjamin Whitson, First National Bank of Tennessee, Crossville
  • Brian Winston, Carroll Bank and Trust, McKenzie