Tennessee Bankers

This Week Newsletter

May 30, 2017 - Issue No. 1721

House Leaders to Pull Durbin Repeal from CHOICE Act

House Republican leadership is expected to remove a provision repealing the Durbin Amendment from the Financial CHOICE Act before it receives a vote on the House floor. The decision came after a number of Republicans had expressed concerns about including the Durbin repeal in the financial reform bill. The bill passed the Financial Services Committee May 4th and is expected to be up for a vote on the House floor in June. Although the provision repealing the Durbin Amendment will be removed from the bill, TBA as well as the state and national trade association will continue to fight for its repeal.

Take Advantage of Discount Tuition at The Southeastern School of Banking

Registration is now open for both the first and second year of The Southeastern School of Banking at Belmont University July 16-21. TSSB is an intensive, general banking school consisting of two one-week resident sessions over two years. Serving bankers since 1939, the school's 70-hour, intermediate-level curriculum focuses on critical banking functions, their interrelationships, and determinants of profitability. Analytical skills and management techniques are developed, along with an understanding of the commercial bank's role in the changing financial services industry.
Discounted tuition of $1,700 is available through June 12, when tuition increases to $1,900. Be sure to invest in your bank's future by enrolling qualified candidates in this year's session. Register and learn more. Contact Susan Taylor with questions.

No Additional Delay for Fiduciary Rule

Labor Secretary Alexander Acosta announced the Department of Labor will not delay the June 9 effective date for the fiduciary rule, which greatly expanded the definition of who counts as a "fiduciary" under ERISA and the Internal Revenue Code. Acosta wrote in a Wall Street Journal op-ed printed that the Administrative Procedures Act, which governs federal rulemaking, would not allow a further delay.
While the new definition takes effect June 9, additional conditions, such as specific disclosures and representations, are not required until Jan. 1, 2018.
DoL issued a bulletin on its "temporary enforcement policy" of phased implementation. Read the enforcement policy bulletin. Read FAQs on compliance.

OCC Updates Policies Related to Violations

The OCC last Tuesday, May 23, announced that it is updating several agency policies and processes related to violations of laws and regulations. The updates apply to examiners at OCC-supervised banks of all sizes and provide examiners with guidance for how to communicate violations with board members and management. For example, examiners must label violations as "new" or "repeat" (if occurring for at least the second time in five years) as well as "self-identified" if brought to examiner attention by bank personnel. Read more.

SmartBank Announces Alabama Acquisition

Knoxville, Tenn.-based SmartFinancial Inc. signed a definitive merger agreement with Tuscaloosa, Ala.-based Capstone Bancshares Inc., which will see Capstone Bancshares merge into SmartFinancial and Capstone Bank merge into SmartBank. SmartBank operates 14 branches and two loan production offices in East Tennessee and the Florida panhandle. Capstone Bank has eight locations in Tuscaloosa, Washington, Clarke and Baldwin counties in Alabama, and had $510.8 million in assets as of March 31. The resulting institution from the pending merger is set to have more than $1.5 billion in assets. The deal is set to close in the fourth quarter and is subject to approvals from each party's shareholders and applicable regulators.

Compliance Alliance: Hot Topic Question

Q: How will construction only loans where the borrower intends to sell the home upon completion be reported for HMDA under the new rule starting next year?
A: There has been some debate on this, and the rule as written isn't very clear on how you should report, or whether you should report at all. However, the CFPB just issued a proposed rule that addresses this question: loans for the initial construction of a home that will be sold upon completion will be considered temporary loans, and therefore not reportable. However, the proposed rule also makes clear that "flip" transactions WILL be reportable as a purchase. Those are transactions in which a borrower purchases an existing home, renovates it, then sells it after completing the renovation. Note that this is a proposed rule, so watch for the final rule to be published in the next few months.
Not a Compliance Alliance member? Learn more by attending a live demo May 30 at 10:00 am CT or June 1 at 1:00 pm CT. For timely compliance updates, subscribe to Compliance Alliance's email newsletters.

Deadline Approaching to Order Bankers Directory

The 2017/2018 Bankers Directory is a compact, handy reference that puts information about all of Tennessee's commercial banks and trust companies at your fingertips.
The directory contains complete financial data for Tennessee banks taken from the 2016 year-end FDIC Call Reports, including statement of condition, main address and phone numbers, officers and directors, and branch locations. The directory also contains TBA–endorsed partners and associate members, complete with a brief description of their product or service.
CEOs, out-of-county main office branches, and associate members each receive one complimentary copy of the directory. Additional copies are available for purchase. The deadline to order this valuable resource is July 21. Click here to order your copy of the 2017/2018 Bankers Directory online, or download the order form and send a completed copy to T'Lanie Luu.

TBA On the Road

  • Nearly 700 Tennessee bankers, associate members, and guests begin traveling to the TBA's 127th Annual Meeting.

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