Tennessee Bankers

This Week Newsletter

April 03, 2017 - Issue No. 1713

TBA Bills Clear First House Hurdles

TBA's legislation providing tools to prevent and deter elder financial exploitation (HB1064/SB1267) and the TBA bill (HB772/SB997) increasing the permissible interest rate for banks under the Credit Card State Bank Act from 21 percent to 30 percent both cleared their first legislative hurdles last week. The elder protection bill, sponsored by Rep. Kevin Brooks (R – Cleveland), gained approval by the House Subcommittee on Consumer and Human Resources and will advance to the full committee this week. The interest rate legislation, sponsored by Rep. Patsy Hazlewood (R-Signal Mountain), was approved by the House Subcommittee on Insurance and Banking and advances to full committee this week.

PACE Legislation Defeated for Another Year

TBA-opposed legislation that would enact the Property Assessed Clean Energy Act has been put to rest for another legislative session. The bill was first heard by the House Subcommittee on Agriculture and Natural Resources where the bill, which did not have support from the members, was sent to summer study, meaning the Chairman could convene an information hearing on the bill over the summer months. This effectively kills the bill for the current legislative session, and in the Senate Committee on Energy, Agriculture, and Natural Resources the bill was taken off notice following the House action.

House Ag Committee Holds Hearing on Farm Credit Oversight

Lawmakers echoed bankers' concerns about "mission creep" by the government-sponsored Farm Credit System in a House Agriculture Committee hearing last week on the system's performance and overall safety and soundness. Tennessee Congressman Scott DesJarlais serves on the committee. TBA and the national trade groups have long criticized FCS for lending beyond the scope of its mission, highlighting a number of instances in recent years where FCS banks made multimillion-dollar loans to telecom giants like Verizon and AT&T, while curbing lending to young, beginning, and small farmers. Farm Credit representatives indicated that they plan to continue pursuing opportunities to finance communications infrastructure projects in rural areas, like those that provide wireless and broadband capabilities. Loans to small farmers have fallen from 30.3 percent in 2003 to just 14.1 percent in 2015, ABA noted in a statement submitted for the record.

Leveraging EverFi's Financial Education Platform–Webinar April 3

Join TBA and endorsed partner EverFi for a free webinar Monday, April 3, at 10 a.m. CT. Click here to register. For more than 5 years, Tennessee Bankers Association and EverFi have partnered together to empower banks across Tennessee to reach schools and customers with innovative Financial Education resources. This webinar will introduce TBA members to enhancements of EverFi's adult financial education platform and Engage, EverFi's brand new platform to manage in-person educational and community service events. For more information about EverFi, contact Stacey Langford at 615-244-4871.

Register for Leadership Convention, April 23-25, Nashville

The TBA Young Bankers Division's signature event, Leadership Convention, returns to Nashville April 23-25. The discounted registration closes April 10 and limited rooms at the conference site, Hutton Hotel, remain. Join us or honor the emerging leaders in your organization by encouraging them to attend. The Convention agenda features professional development session in banking and leadership topics, peer to peer roundtable session, an address by Commissioner Greg Gonzales, and networking receptions that help attendees build industry contacts and relationships statewide. Open to all ages and areas of the bank or associate member company, the typical age of Young Bankers Division participants spans from late 20's to early 40's. For details, registration and hotel reservations visit TNBankers.org/Leadership.

Peoples State Bank of Commerce, Nolensville Announces Deal with Alabama Bank

Scottsboro, Ala.-based FNS Bancshares Inc. plans to acquire Nolensville, Tenn.-based Commerce Bancshares Inc. Following deal completion, Peoples State Bank of Commerce will merge with and into FNB Bank, and its branches will operate under FNB Bank. Expected to close third quarter, FNB Bank will add three branches—in Nolensville and Ardmore, Tenn., and Grant, Ala.—to its existing nine branches in Alabama. Peoples State Bank reported total assets of $156.7 million, while FNB Bank reported total assets of $373.1 million, for the period ended Dec. 31, 2016.

Alexander, Corker Introduce Health Care Options Act

Tennessee Sens. Lamar Alexander and Bob Corker last week introduced legislation to rescue Americans with Affordable Care Act subsidies who have zero options for health insurance on the exchanges for the 2018 plan year. The Health Care Options Act of 2017 will allow Americans who live in counties in which there are no health insurance options on the Affordable Care Act exchange to use their subsidy to purchase any health insurance plan outside of the exchanges, as long as the insurance is approved by the state for sale in the individual market.


"There are 34,000 Knoxville area residents who rely on an Affordable Care Act subsidy to purchase insurance, and after the one remaining insurer pulled out of the exchange for 2018, these subsidies are worth as much as bus tickets in a town with no buses running," Alexander said. "There is also a real prospect that all 230,000 Tennesseans who buy insurance on the exchange—approximately 195,000 with a subsidy—won't have any plans to buy next year either, and millions of Americans in other states are facing the same dire circumstances."

FPSI This Week: Appraisals and Property Evaluations

FinancialPSI's dedication to boast the industry's best and community bank-focused products, we are excited to present appraisals and property evaluations for residential and commercial properties. Our highlighted product is from RESIDx, which has designed reports to be both efficient in time and cost, in addition to being professional and arm's length. Many banks are utilizing these reports to replace or enhance in-house evaluations for loans that do not require a full appraisal.


There are two main products available. The READ Audit, which is similar to a desktop report, and offers the comps, market analysis, and property value without photos of the subject for a cost of only $60. The SCOPE Evaluation provides a drive-by report in addition to the details from the READ Audit. The interior is also available. This report is designed to meet the InterAgency Guidelines for property evaluations, and its cost is only $110.


For more information, please contact FinancialPSI's Jon Goodson or Ted Frizen.

TBA On the Road

  • Strategic Technology Conference is held in Murfreesboro with more than 160 attendees and a sold out trade show.

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