Tennessee Bankers

This Week Newsletter

February 13, 2017 - Issue No. 1706

Bill Introduction Deadline Passes for General Assembly

Last Thursday marked the bill filing deadline for the both the Senate and House. By the end of the day, more than 1,500 bills had been filed for consideration during the 110th general assembly. TBA's government relations team is reviewing each of the bills to identify those of impact to the banking industry. The current list of bills of interest is available here. For a detailed update on federal and state government relations, please join TBA's bi-weekly conference calls held every other Friday, with the next call scheduled for Feb. 17. If you would like to participate, contact Penny Powlas.

Young Bankers Division Day on the Hill March 8

An annual advocacy event of the Young Bankers Division, Day on the Hill provides the opportunity for bankers from across the state to engage in the legislative process. Participants will spend the day at the State Capitol in Nashville and hear from members of the General Assembly and the TBA government relations team about current issues before the legislature. Day on the Hill typically draws more than 50 attendees and serves as an introduction to the legislative process or an opportunity for politically active bankers to spend a day at the Capitol reinforcing relationships with elected officials. To register or for more information click here, or email Stacey Langford.

ABA Sues Over Federal Reserve Dividend Cut

ABA and Seattle-based Washington Federal last week filed suit in the Court of Federal Claims seeking relief for government actions that violate contracts with Federal Reserve member banks by reducing dividends paid to those institutions. The cut was part of the 2015 highway spending bill, which reduced the annual dividend for Fed member banks with more than $10 billion in assets from 6 percent to approximately 2 percent. The litigation seeks to reimburse banks for these improper reductions of the dividend payment asserting breach of contract and taking of private property without just compensation in violation of the Fifth Amendment to the U.S. Constitution.


ABA President and CEO Rob Nichols in a press release announcing the lawsuit emphasized the effect of the policy, saying that the highway bill "set a troubling precedent to target specific segments of the business community to meet broad public obligations like highway infrastructure. Every industry in this country is vulnerable if this is allowed to stand."

NCUA Issues Alternate Capital Proposal for CUs

The National Credit Union Administration last week published an advanced notice of proposed rulemaking to expand the types of investment capital that federally insured credit unions could use to meet certain regulatory requirements. NCUA is considering whether to allow credit unions to use investment capital (that would be uninsured capital subordinate to all other claims) to satisfy the risk-based net worth ratio requirement, which is currently only allowed for low-income designated credit unions. While any change to the net worth ratio would require an act of Congress, the NCUA asserted in the proposal that it has broad authority to adjust the risk-based net worth ratio requirement and therefore may choose to allow credit unions that are not low-income designated to use alternative capital to meet this requirement.


TBA's Tim Amos expressed dismay at the NCUA proposal in his remarks to at TBA's Credit Conference last week, noting that once again, the NCUA continues to act as a cheerleader for the industry it has been charged with supervising. Comments are due on the ANPR by May 9.

FirstBank to Merge with Clayton Bank and American City Bank

Nashville-based FB Financial Corp. entered into a stock purchase agreement for its unit FirstBank to buy Clayton HC Inc. units Knoxville-based Clayton Bank and Trust and Tullahoma-based American City Bank. The deal is valued at about $284.2 million, based on FB Financial's common stock closing price as of Feb. 7. The acquisition is expected to close in the third quarter and is subject to approval by regulators and the shareholders of both holding companies. Both Clayton bank subsidiaries are S-corporations, and they are expected to be merged into FirstBank after the completion of the merger. As of Dec. 31, 2016, Clayton Bank and Trust had $886.9 million in assets, American City Bank had $307.9 million in assets and FirstBank had $3.28 billion in assets.


In September 2016, Apex Bancorp Inc., the third unit of Knoxville, Tenn.-based Clayton HC Inc., announced plans to acquire American Patriot Bank based in Greeneville.

TSSACL Meets the Needs of Today's Commercial Lender

Established in 1994, The Southeastern School of Advanced Commercial Lending boasts an ideal curriculum that meets the needs of today's commercial lender. This intensive program focuses on advanced cash flow and loan structure, commercial real estate lending, and new approaches to predicting portfolio credit performance and managing portfolio credit risk. 


The program, with housing optional, provides instruction applicable to both community and holding company bankers. This school's curriculum will benefit commercial lenders, relationship managers, portfolio managers, senior credit managers, and others who currently are responsible for, or are interested in,  growing the bank's loan portfolio profitably and better managing portfolio credit risk. TSSACL is held February 20-22 at the Loews Vanderbilt Hotel, Nashville.

Next Senior Compliance Officer Forum Taking Place Feb. 28

The 2016-2017 Senior Compliance Officer Forums bring together senior compliance officers, those for whom compliance is their primary responsibility within the institution, in a small-group setting to exchange ideas freely, dissect challenges openly, and discuss solutions that can improve the performance of your bank in the area of compliance. The next session is Feb. 28, at the TBA Barrett Training Center in Nashville. It will begin at 9 a.m. and conclude at 3 p.m. with lunch included. Click here to learn more and contact Debbie Brickles to enroll.

Early Registration Deadline for The Southeastern School of Consumer Credit is Feb. 15

The Southeastern School of Consumer Credit is an intermediate-level, one-week program featuring more than 30 hours of classroom instruction through 14 modules in five-course clusters offering specialized but well-rounded training in consumer banking. Recommendations for participation require at least one year's experience in consumer credit or five years of general banking experience, in addition to prescribed AIB or college course prerequisites. TSSCC takes place March 5-10 at the TBA Barrett Training Center in Nashville. Click here for more information.

TBA's Whole Bank Compliance Program

State bankers association-owned Compliance Alliance offers consumer and regulatory compliance support across your entire financial institution. It covers bank functions from HR and marketing to electronic banking, executive management, and lending. A subscription offers each and every staff member unlimited access to the tools, check lists, policies, and procedures. Each Compliance Alliance member bank downloads approximately 450 compliance products & tools on average per bank per year. Click here for a live webinar membership demo.

Legislative Reception/Credit Conference Recap

The 2016 Credit Conference was another successful event, with outstanding attendance numbers hitting 575 and top-notch industry speakers. The Legislative Reception preceding the Credit Conference also attracted a record-setting crowd, and is one of the TBA's most important advocacy events of the year. Make plans to join us next year February 21 for Legislative Reception and February 22-23 for Credit Conference at the Omni Hotel, Nashville.


Click here for a Credit Conference photo recap, and click here for a Legislative Reception photo recap.

Welcome New Associate Member

TBA welcomes new associate member eSentire in the category of security services. Please thank this company for their support of the Tennessee banking industry through membership, and when evaluating vendor partners review the list of all TBA associate members in our online directory.

TBA On the Road

  • The first CFO/Controller Forum of 2017 takes place in Nashville.
  • TBA's Colin Barrett speaks to the Mt. Juliet Chamber of Commerce.

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

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