Tennessee Bankers

This Week Newsletter

September 12, 2016 - Issue No. 1637

ICBA Sues NCUA over Business Lending Rule

ICBA filed a lawsuit last week against the National Credit Union Administration challenging the agency's unlawful commercial lending rule issued earlier this year. The lawsuit targets an NCUA rulemaking that allows tax-exempt credit unions to dramatically exceed commercial lending limits set by Congress.
The NCUA final rule allows a credit union to exclude nonmember commercial loans or participations from its calculation of the member business loan cap. In its lawsuit, ICBA noted the rule is contrary to the plain language of federal law and provides the credit union industry with a huge loophole it can easily exploit to increase commercial lending.
The lawsuit also notes that the NCUA rule puts consumers, taxpayers, and the financial system at risk by jeopardizing the safety and soundness of federally insured credit unions. It also expands the federally funded competitive advantages these tax-exempt institutions enjoy over community banks.

"We fully support ICBA's lawsuit against the NCUA," said TBA President Colin Barrett. "The NCUA has consistently over-stepped their bounds, and TBA will assist ICBA's efforts in any way possible." Learn more about the lawsuit.

Build a Compliance Culture—Register for Compliance Conference

How strong is your compliance culture? In the chaos of keeping up with 13,000+ regulatory requirements, the notion of culture often gets lost. And, like many aspects of the regulatory landscape, there is a lack of clarity and precision around how it's defined and created. This year's Compliance Conference is designed to show us how to build a culture within and to teach us how to find real-world, up-to-date compliance solutions to get the job done.
Compliance Conference, scheduled for October 4 and 5 at the Nashville Airport Marriott, boasts an impressive lineup of veteran conference speakers and nationally known compliance authorities. Register now—you will not want to miss this year's conference!

TN General Assembly Convenes Special Session

Tennessee lawmakers return to Nashville on Monday, Sept. 12, for an "extraordinary" session called for by Gov. Bill Haslam to repeal a new DUI law that could cost the state $60 million in federal highway funding.

The law passed in April and stiffened the penalties for 18-20 year-olds who drive under the influence, but federal officials announced last week that the law is not in compliance with federal requirements, thus making the state ineligible for about 8 percent, or $60 million, in federal funding.

The state must act before the start of the new federal fiscal year on Oct. 1.

Congress Returns from Recess; Financial Reform Discussion on September's Agenda

Congress reconvened last Tuesday, Sept. 6, for a month-long session before taking another break ahead of the November elections. While it's unlikely that any meaningful financial legislation will pass in this session, lawmakers have an opportunity to lay the groundwork for next year with a new administration and a new Congress.
Congress's first order of business is passing a continuing budget resolution in hopes of avoiding another government shutdown close to election time. 
Members of Congress are also busy with hearings on several financial-related matters.  House Financial Services Committee Chairman Jeb Hensarling plans to hold a vote on his broad sweeping financial reform legislation—The Financial Choice Act—that will serve as an alternative to the Dodd-Frank Act. The bill has a good chance of partisan passage in Hensarling's committee, though it has little chance of passing the full House or Senate this year.
Federal Reserve Board officials will testify at two hearings the end of September—Fed governance, monetary policy and the economy on Sept. 26, and financial regulation of banks on Sept. 28.
GSE reform may be discussed as Rep. Ed Royce (R-CA) is expected to introduce a bill that would encourage more risk-sharing transactions between Fannie Mae and Freddie Mac and the private sector. The bill is unlikely to pass in the near-term, but it could be used as a building block for future housing finance reforms.

Fall Leadership Luncheons Begin September 27

Fall Leadership Luncheons offer an opportunity for TBA to engage the younger banking leaders of Tennessee during seven luncheons around the state. Luncheons offer networking with regional banking peers, an update and overview on the initiatives of the TBA and Young Bankers Division, and a guest presenter to compliment the engagement of the YBD in TBA's government relations efforts. 2016 guest speakers include Mayor Jim Strickland, Insurance & Banking Subcommittee Chairman Kelly Keisling, Senator Steve Dickerson of Nashville and others. Luncheons are scheduled for September 27-30 and October 3-5 in Cookeville, Nashville, Knoxville, Kingsport, Chattanooga, Jackson, and Memphis, respectively.
Take a look at your roster and identify a young leader in your organization to engage with TBA and send to the fall Leadership Luncheons. Registration is now available for all locations and dates.

FinCEN Issues Advisory on Email Compromise Schemes

The Financial Crimes Enforcement Network last week issued an advisory on email fraud schemes in which criminals misappropriate funds by deceiving financial institutions and their customers into conducting wire transfers.  The advisory covered business email compromises where criminals target a business customer of a bank and email account compromises, which are targeted at personal bank accounts. The hallmark of these frauds is that they hack or spoof email accounts to take advantage of the trust of employees or financial institutions in existing customer relationships.

The advisory also provides red flags that financial institutions may use to identify and prevent email compromises, including transaction instructions with different languages, amounts, account information, authorizers and email addresses than are usually used; directions to deposit funds with a foreign bank previously implicated in such schemes; emails marked "urgent" or "secret"; and follow-up transaction requests seeking additional payments into new accounts. Read the advisory.

Personal Economics Program Recognizes Outstanding Banks, Bankers

The TBA Young Bankers Division honored outstanding banks and bankers for excellence in educating the public about personal finance, banking, and economics through the Personal Economics Program (PEP). 
From June 1, 2015, the beginning of the "PEP year," through May 31, 2016, bankers in Tennessee reached more than 142,616 people through more than 4,999 presentations to students from kindergarten through college, civic and business organizations, seniors groups, and other consumers to help them understand personal money management, the wise use of credit, identity theft, predatory lending, and other such issues. 
2015-2016 PEP Bank of the Year—Wilson Bank & Trust, Lebanon
2015-2016 EverFi Banker of the Year—Jennifer Whitener, Wilson Bank & Trust, Lebanon
Top PEP Banker/Grand Division Awards

  • Top PEP Banker for East Tennessee—Diane Riggs, Community National Bank, Dayton
  • Top PEP Banker for Middle Tennessee—Wonda Turnbo, Wayne County Bank, Waynesboro
  • Top PEP Banker for West Tennessee—Judi McAlpin, BancorpSouth Bank, Dresden.

Teach Children to Save Award—Community National Bank, Dayton
Get Smart about Credit Award—First Volunteer Bank, Chattanooga
The Young Bankers Division has been involved in these efforts in Tennessee since 1962 when they first launched a campaign to assist teachers in broadening the public understanding of banking. For more information about TBA's financial literacy efforts, contact T'Lanie Luu. To see a full list of PEP award winners, click here.

Women In Banking Conference Photo Recap

TBA held its inaugural Women in Banking Conference on Sept. 8. The conference featured a variety of informative speakers. AmyK Hutchens' talked about the importance of leaders asking the right questions, and Amy Bunton gave advice on how to connect with women business owners. The conference gave attendees the opportunity to network with other professional women and discuss similar challenges and solutions. Click here to see a photo recap.

Order Your 2017 Bank Holiday Closing Signs

TBA produces professional holiday closing signs for the standard holidays observed by the Federal Reserve. Posting the signs at each entrance to your main office and branches, as well as drive-through windows, will alert your customers to the bank being closed. The signs are 5" x 7" in size and adhere to any glass or wood surface without leaving residue upon removal. The cost of each 2017 Holiday Closing Sign set is $25.50 for TBA Members, plus shipping and handling and sales tax. Deadline for ordering is Friday, October 14. The signs will be shipped in mid–November. Click here to order.

2016-2017 At-A-Glance Education Calendar Released

We understand that your planning for winter and spring professional development starts early, so TBA is pleased to release our 2016-2017 At-A-Glance live educational calendar so that you can start saving dates and planning ahead. The calendar runs through June 2017 and includes more than 65 live educational programs. The full Professional Development Directory that includes the listing of programs for all of 2017 along with short descriptions and pricing will be available in early October.

TBA On the Road

  • Stacey Langford visits members in Middle Tennessee.

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

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