Tennessee Bankers

This Week Newsletter

August 15, 2016 - Issue No. 1633

TBA Inducts Six Bankers as Leaders of Banking Excellence

On Wednesday, August 10, TBA had the privilege of inducting six individuals into the Leaders in Banking Excellence: Dotson Guinn (Northern Bank of Tennessee), Kenneth C. Howell (First Freedom Bank), Rob McCabe Jr. (Pinnacle Financial Partners), Elmer Richerson (Wilson Bank & Trust), C. Ann Smith (Citizens Tri-County Bank), and Terry Turner (Pinnacle Financial Partners). This elite group have made significant contributions to the banking industry, to their respective financial institutions, and to the communities they have served.  Click here to see a photo of the honorees on TBA's Facebook page.

Agencies Propose Simplified Call Reports

The federal banking agencies on Aug. 4 proposed a new, shorter Call Report with simplified instructions for banks with less than $1 billion in assets and no foreign offices. The proposed new Call Report form will have 61 pages because of the removal of 950 data items, or about 40 percent of entries on the current Call Report.

The revised Call Report would streamline how banks report their complex activities, with existing schedules on complex or specialized activities—such as derivatives, trading or credit card lending—replaced by simple questions that ask whether banks engage in the activities and indicate specific data items to fill out if they do. Some schedules would be filed on an annual or semiannual basis.

If adopted, the new Call Report would take effect with the March 31, 2017, report date. Comments on the proposal are due 60 days after it is published in the Federal Register. Read the proposal.

NCSL Votes Down Glass-Steagall Resolution

The National Conference of State Legislators last week held its Legislative Summit with several Tennessee state senators, representatives and, legislative staff participating. As was expected, the Communications, Financial Services and Interstate Commerce Committee offered a proposed resolution to urge Congress to reinstate the provisions of the Glass-Steagall Act separating commercial and investment banking services. 

After outreach from TBA to Tennessee's participants as well as other state and national trade groups involvement, the CFI committee rejected the proposal by a vote of 19-2. A similar measure was proposed two years ago and rejected by a vote of 17-2.

SBA Proposal Would Streamline Business Loan Programs

The Small Business Administration on Tuesday, Aug. 9, issued a proposed rule amending several regulations relating to the 7(a) and 504 loan programs used by banks. The proposed changes are intended to streamline SBA processes and update or remove outdated provisions.

The proposed changes include redefining cooperative businesses as eligible for SBA-backed loans; clarifying terms related to eligible passive companies, including expanding SBA's discretion to require personal guarantees from minority owners; providing more lender flexibility on when base rates are determined and when variable rates are adjusted; clarifying what fees lenders may or may not collect from loan applicants; and increasing the pool of parties who are permitted access to lender information when needed to avoid case-by-case approvals.

The proposal includes amendments to reflect updated technology or practices, such as revising guidelines for paying guaranty fees to reflect electronic payments and removing language describing "on-site" exams. It would specify that SBA can charge lenders the actual cost of reviews and assessments associated with additional oversight, rather than apportioning those expenses among all lenders. Comments on the proposal are due Oct. 7. Read the proposed rule.

Membership Meetings Begin This Week in Chattanooga

The TBA Membership Meetings begin this week and it is not too late to register for the luncheon in your area.  During each luncheon, TBA staff will present on the state of the association, 2016 state legislative successes, provide a preview of 2017 legislative issues, analyze the recent Primary Election results, identify General Election races to watch, and showcase the changing face of TBA communications. New this year, TBA has invited the Tennessee Congressional Delegation to join the meeting in their district and make remarks. Register here.

Ten Congressional Races to Watch

Friends of Traditional Banking (FOTB), a nonpartisan grassroots group that targets financial support into key Congressional races each election cycle, has announced their 2016 Top Ten Watch List. "These are candidates who have proven to be friends of common sense financial regulations and an environment where lending and borrowing are supported in growing our economy," said FOTB Chairman John Boyer, who is also chairman of Kanza Bank in Kingman, Kansas.
From this list, FOTB will announce the two candidates they are encouraging their members to support shortly after Labor Day. In 2014, members of FOTB and their allies donated over $500,000 each to the successful races of senators Joni Ernst (IA) and Cory Gardner (CO).

Sen. Kelly Ayotte (R-New Hampshire): She is in a very tight race for reelection, and has been a great supporter of traditional banking. Ayotte has co-sponsored several pieces of legislation to reform and give greater oversight of the CFPB. She has cosponsored the Basel III CASE (Common Sense for Small Entities) Act, the Community Bank Access to Capital Act, the CLEAR Relief Act, the Financial Institutions Examination Fairness and Reform Act, and more.
Fmr. Sen. Evan Bayh (D-Indiana) and Rep. Todd Young (R-Indiana): This race will be closely examined as two friends of traditional banking face off. Bayh, a former 2-term senator who could return to the Senate Banking Committee with seniority as the ranking Democrat, was a promoter of Federal Home Loan Bank issues and board member of Fifth Third Bank. As a member of the Senate Banking Committee he took on Sen. Dick Durbin who was trying to pass an awful bankruptcy bill. Bayh won, as did traditional banking. Young has also been a champion of common-sense financial issues and a staunch opponent of Dodd-Frank.
Rep. Joe Heck, Senate (R-Nevada): The doctor, general and Congressman is seeking to fill outgoing Harry Reid's seat in the Senate. This race will be a tremendous opportunity to elect another friend of traditional banking to the Senate. In the House, he opposed Dodd-Frank and advocated for legislation to reduce burdensome regulations and encourage economic growth
Sen. Mark Kirk (R-Illinois): An important member of the Senate Banking Committee, Kirk has been a strong supporter of efforts to reform Dodd-Frank and is well known as a fiscal conservative.
Sen. Rob Portman (R-Ohio): A strong advocate for the banking industry on the Senate Finance Committee, Portman introduced the CFPB-IG Act to create an inspector general to put limits on the CFPB, as well as cosponsoring a significant amount of bills to promote traditional banking. He faces a hard reelection campaign against a former governor with popularity across party lines. His opponent is a strong credit union supporter and this race will be one of the closest in the Senate this election.
Sen. Pat Toomey (R-Pennsylvania): A key member of the Senate Banking and Senate Finance Committees, Senator Toomey has been a strong supporter of traditional banks. He is currently in a very tight race for re-election. Toomey has sponsored legislation (S.970) to allow more small banking institutions to qualify for the 18-month onsite exam cycle. In addition, he co-sponsored the Privacy Notice Modernization Act and the CLEAR Relief Act as well as a bill to provide a temporary safe harbor from the enforcement of integrated mortgage loan disclosure requirements.
Rep. Andy Barr (R- KY): A member of the Financial Services Committee. Barr introduced the CFPB Rural Designation Petition and Correction Act to put some limits on the CFPB. He also introduced the Restoring Proven Financing for American Employers Act to exempt existing collateralized loan obligations from the Volcker Rule. Andy also introduced the Portfolio Lending and Mortgage Access Act, which would broaden the definition of a "qualified mortgage" to include all mortgages held on a lender's balance sheet.
Rep. Mia Love (R-Utah): A member of the Financial Services Committee and outspoken advocate for traditional banking. Love successfully sponsored a bill to expand relief for small bank holding companies and is working on legislation that would protect traditional banks from unintended consequences of the Volcker rule. This swing district will be hotly contested.
Rep. Rod Blum (R-IA): A strong advocate for traditional banking and a longtime board member for American Trust, a $1 billion community bank based in Dubuque, Iowa. Rod has helped champion the Eliminate Privacy Notice Confusion Act, the TAILOR Act, the Mortgage Choice Act of 2015, the Portfolio Lending and Mortgage Access Act, and the Small Bank Exam Cycle Reform Act.
Rep. David Scott (D-GA): A member of the Financial Services Committee and advocate of strong bi-partisan support for traditional banking. Scott helped create the mortgage assistance program Home Assistance Mortgage Program (HAMP), was a key sponsor of the Swap Jurisdiction Certainty Act to reduce SEC regulations, and was one of only 35 Democrats to support the Promoting Job Creation and Reducing Small Business Burdens Act designed to reduce many of the most onerous provisions of Dodd-Frank.
Friends of Traditional Banking is a non-partisan grassroots effort organized by bankers in 2012 to improve the political and regulatory environment for the traditional banking industry in the U.S. FOTB is the inverse of a PAC_instead of spreading a little bit of money to a lot of campaigns, they focus a lot of money on a couple of key campaigns.

Register for TBA's Inaugural Women in Banking Conference

According to a 2013 U.S. Equal Employment Opportunity Commission report, women make up 57.6 percent of all employees in the commercial banking industry. Despite that majority, 48.4 percent are first/mid-level officials and managers and only 30.9 percent hold executive/senior level positions.

As gender demographics shift to even more women working in financial institutions, the Tennessee Bankers Association will host its inaugural Women in Banking Conference. The event, scheduled for September 8 at TBA's Barrett Training Center in Nashville, will bring together Tennessee's many successful female bankers for professional development and networking. Click here to learn more and register.

Retail Banking Officer Forum

In its third year, the Retail Banking Officer Forums affords a platform for retail banking officers to exchange ideas freely, examine pressing issues in today's ever-evolving regulatory, cost-conscious, and productivity-driven environment. Discussion topics include:

  • Current Tennessee retail banking challenges—from operations to regulations and e-banking
  • Building a retail banking branch and culture
  • Current challenges with growing the retail branch

The first session begins September 1. You don't want to miss this opportunity. To register, contact Debbie Brickles.

TBA On the Road

  • TBA travels with Chairman Gordon Majors to Chattanooga, Manchester, Nashville, Jackson, and Memphis for the first 5 of 7 membership meetings. 

See where TBA goes while "on the road" by following  @TNBankers.