Tennessee Bankers

This Week Newsletter

May 01, 2017 - Issue No. 1717

General Counsel Tim Amos to Leave TBA at End of Year

Tim Amos will leave TBA on December 31, 2017, after 33 years of service to the industry. "No one is more knowledgeable about banking legislation and regulation than Tim," TBA Chairman Gordon Majors said. "He has been a staunch and tireless advocate for our industry, and all bankers in this state are indebted to him for those efforts." Amos plans to open a legal and government affairs consultancy in 2018 and will remain a valuable part of the TBA.


On January 1, 2018, Amy Heaslet will become SVP and General Counsel. Heaslet has served the TBA and Tennessee banking industry for the past eight years and has developed a strong reputation on the Hill for her relationships, knowledge, and fight on behalf of our industry.


SVP Stacey Langford will continue to be a valuable part of the TBA's legislative efforts.

DeNovo Bank Planned for Nashville

A group of former bank executives, led by former Avenue Bank Chief Strategy and Marketing Officer Aaron Dorn, are looking to launch a new bank in Nashville. The company, currently operating under the name SFH Pursuit Company Inc, is in the capital raising phase and has already recruited several area bankers as part of the leadership team. For more information, click here (subscription required).

General Assembly Works to Finalize Budget

Last week Governor Bill Haslam signed the IMPROVE Act only two days after passing the legislature, a move that often takes weeks for processing. This opens the door for the legislature to finalize the budget. With the gas taxes and tax cuts included in the IMPROVE Act, several budget provisions hinged on its approval. One of the cuts included in the act is a 5-year, 1 percent annual reduction phase out of the Hall income tax. Last year the General Assembly adjourned April 20, it's expected that they'll adjourn the 2017 within the next two weeks. 

House Financial Services Committee Holds Hearing on CHOICE Act

On Wednesday the House Financial Services Committee held a hearing on the Financial CHOICE Act, Chairman Jeb Hensarling's (R-TX) 600 page bill to reform Dodd Frank and provide regulatory relief for banks. A markup of the bill is scheduled for next week—perfect timing as the TBA Washington Conference begins.


The CHOICE Act includes a QM safe harbor for loans held in portfolio, mandated tailored supervision, and a repeal of the Durbin Amendment. The bill also contains a provision that would allow banks maintaining a 10 percent non-risk weighted leverage ratio additional regulatory relief.


The legislation, which will likely pass the House on a party line vote, will be completely rewritten in the Senate Banking Committee to receive enough support from Senate Democrats to get past a 60 vote filibuster.

TBA Joins Amicus Brief in Support of KleinBank

On Friday, January 13, the Department of Justice (DOJ) filed a lawsuit against KleinBank, a $1.8 billion Minnesota bank. The lawsuit alleges that the bank engaged in unlawful "redlining" of minority neighborhoods from 2010 to 2015. Often in DOJ lawsuits, the defendant pays a fine, but KleinBank has indicated that they are going to vigorously fight the lawsuit, stating the claim has "no basis in fact."


In nearly all discrimination cases, the case is referred to the DOJ by the bank's primary regulator. The KleinBank case is different because the bank's primary regulator, the FDIC, did not refer this case to the DOJ. The FDIC has never noted any fair lending violations and has never given KleinBank a less than satisfactory CRA rating. The other important aspect of this case is that the DOJ is not focused on the bank's lending performance within its CRA assessment area.


TBA will continue to update our membership on this case. For more information, please contact Colin Barrett.


On Wednesday, the Conference of State Bank Supervisors sued the OCC, claiming that their attempt to create a national nonbank charter will harm markets, innovation and consumers. The suit claims that the by creating a charter for nonbanks, the OCC has overreached its authority under the National Bank Act.


"The OCC's action is an unprecedented, unlawful expansion of the chartering authority given to it by Congress for national banks. If Congress had intended it to be used for another purpose, it would have explicitly authorized the OCC to do so," said John Ryan, CSBS President and CEO.


John Ryan will visit with Tennessee bankers during next week's Washington Conference. The CSBS is the third lawsuit against a federal regulator by a national trade association, with both ABA and ICBA bringing lawsuits against the NCUA in recent months.

Young Bankers Division Elects New Officers, Directors

As part of the business of the Leadership Convention, members of the division elected new officers and directors to lead the division during 2017-2018. Chris Schlueter, FirstBank, Nashville, presided over the business activities of the convention as the 2016-2017 chairman.


Delegates elected the following bankers to serve as officers:

  • Chairman—Michelle Bing, Senior Vice President/Commercial Lending, Bank3, Union City
  • Chairman-elect—Josh Lane, Senior Vice President/Lending Services, TNBANK, Knoxville
  • Vice Chairman—Samuel L. Short, Senior Vice President, Southern Bank of Tennessee, Mount Juliet

Directors elected to the board during this year's convention were: 

  • Michael J. Saporito, II, First Vice President, Mountain Commerce Bank, Knoxville
  • James J. Fuller, Branch Manager/Lender, Southern Community Bank, Tullahoma
  • Misty Sharp, VP/Marketing Director/Internal Audit BSA, Centennial Bank, Medina

Fulfilling one-year of a vacated term in West Tennessee is Billie Jo Parker, Managing Director, Metropolitan Bank, Memphis. Directors completing their 3-year terms were Danielle Williams, First Citizens National Bank, Newbern and Samuel L. Short, Southern Bank of Tennessee, Mount Juliet.

Leadership Convention Photo Recap

The 2017 Leadership Convention was held April 23-25 with over 130 members participating. View the photo recap here. Make plans to attend next year's Leadership Convention as it returns to the historic Peabody Hotel in Memphis, April 15-17, 2018.

Military Lending Act Essentials Webinar May 25

On July 22, 2015, the Department of Defense (DOD) published a 54-page final rule that amends its existing Part 232, which implements the Military Lending Act (MLA). The DOD amended its regulation primarily for the purpose of extending the protections of the MLA to a broader range of closed-end and open-end credit products. The revised rule was effective October 1, 2015. Compliance was mandatory, for the most part, on October 3, 2016.


This Military Lending Act Essentials webinar, May 25 from 1:30-3:30 CT, helps participants assure they are prepared for the first regulatory review of MLA compliance. Participants will receive a detailed manual, which will serve as a handbook long after the webinar is completed. Click here to register.

The Southeastern School of Commercial Lending Begins May 21

This is your last chance to sign up for TBA's Southeastern School of Commercial Lending. This intermediate-level, one-week school exposes students to the major issues commercial lenders face today. Eleven different instructional modules address topics such as how businesses operate and the ways their financing needs arise, meeting the multiple financial needs of customers through effective relationship banking, and understanding the role of a company's management and how to analyze and evaluate management. Basic and advanced analytical techniques are covered, along with ways to apply these techniques in making decisions, structuring, and pricing loans through interactive case studies. The curriculum also addresses commercial real estate lending, how problem loans develop, and the appropriate techniques for managing them. The school ends with an overview of key elements of a bank's credit process.The Southeastern School of Commercial Lending takes place May 21-26 at the TBA Barrett Training Center. Register today—space is limited.

Information Security Officer (ISO) Education Early Registration Deadline May 3

If your bank has not provided formal continuing education for your designated Information Security Officer (ISO), this will be an issue in your next IT examination. On May 17, TBA is offering a one-day, comprehensive and bank-specific program at the TBA Barrett Training Center that will equip your ISO with the knowledge and confidence necessary to take on this important responsibility. This session will appeal to Information Security Officers, chief risk officers, auditors, compliance officers, technology and operations management, chief financial officers, board members, and anyone else responsible for information security or cybersecurity preparedness. Representatives from Sawyers & Jacobs, LLC, in Collierville, Tenn., will share their expertise in this area so that compliance with these new regulations will not be an issue in your next IT exam. The early registration deadline of May 3 is quickly approaching, so we encourage you to register.

TBA On the Road

  • TBA's largest Washington Conference kicks off May 1 with 99 registered.
  • TBA Board of Directors holds their quarterly meeting.
  • The Independent Division Board of Directors holds a board meeting in Washington.
  • TBA hosts associate members Friday for the annual Appreciation Picnic.

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

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