Tennessee Bankers

This Week Newsletter

January 08, 2018 - Issue No. 1801

Tennessee General Assembly Convenes Tuesday

The state House and Senate will convene the second regular session of the 110th General Assembly on Tuesday, January 9.

Lawmakers return to Nashville with their own legislative agendas and a goal of adjourning by mid-April to resume campaigning for their re-elections. Priority issues for the business community this year will be to address workforce challenges, including recruiting skilled employees and enhancing use of vocational training in schools. Other efforts could include reforms to the franchise and excise tax and repeal of the professional privilege tax.

TBA’s priority legislation this year, pending approval of the state Treasurer and Collateral Pool Board, will allow banks to pledge bonds issued by other states and other states’ municipalities as collateral for public deposits.

Want to learn more about what to expect from the 110th General Assembly? Click here to read Amy Heaslet's report in TBA's blog.

TBA Hosts Bi-weekly Legislative Update Conference Calls

The best way to stay on top of legislative issues during session is to participate in TBA's legislative conference calls hosted every other Friday by the TBA government relations team. The calls begin at 2:30 p.m. CT and last approximately 30 minutes.

The first call is scheduled for Friday, Jan. 12. If you would like to participate in these calls, please contact Amy Heaslet.

Plus, save the date for these important TBA government relations events:
February 21: Legislative Reception
March 13: Young Bankers Day on the Hill
May 14-16: TBA Washington Conference

2017 TBA BankPac Breaks New Record

The 2017 TBA BankPac campaign broke new records when it closed out the year, raising $215,075 from 123 contributors. 

This was the most BankPac has raised in a single year, exceeding the past record set in 2015 of $213,820. The success achieved in 2017 will ensure TBA BankPac remains one of the largest contributing business PACs in the state during this election cycle.

BankPac’s record-setting year is owed largely to the work of BankPac chairman Mike Edwards and the dedicated committee members from across the state. 

CFPB Will Not Assess Penalties for 2018 HMDA Data Submissions

The Consumer Financial Protection Bureau announced in late December that it will not assess penalties with respect to errors in Home Mortgage Disclosure Act data collected in 2018 and reported in 2019, and the Bureau will not require banks to resubmit data for that period unless errors are found to be material. Banks must begin submitting HMDA data collected in 2017 and beyond using the CFPB’s new online platform on Jan. 1.

The CFPB also announced that it is opening a rulemaking to consider various aspects of the 2015 HMDA Rule, including the institutional and transactional coverage tests and the rule’s discretionary data points. The OCC and the FDIC also made similar statements regarding their treatment of HMDA data.

The Bureau also recently launched the HMDA Check Digit Tool and Rate Spread Calculator, which are designed to support calculation of data field values required for reporting HMDA data. Access the Check Digit Tool and Rate Spread Calculator.

SEC Issues Guidance on Accounting for Tax Reform

The SEC on Dec. 22 issued a staff bulletin and related guidance regarding accounting for the tax reform bill that was signed into law that same day. Addressing several key financial reporting issues, the guidance recognizes the challenges associated with the timing and complexity of the calculations required by the enactment of tax reform. It also recognizes that estimates are required and that there may be a need for adjustments when information becomes available.

The guidance generally provides a one-year period for making refinements to estimates, but notes that if actual or reasonable estimations of tax reform effects are available, they should be reported in the year of enactment, which is 2017. It also includes guidance on Regulation 8K disclosure requirements. Read the staff bulletin. Read the guidance.

Loan Officers and Lenders—Take the Next Step in Your Career

Calling all loan officers, loan review personnel, branch managers, and prospective lenders: Whether you are a just getting started in your career or a veteran, TBA is offering two programs to take your talents to the next level.

Essentials of Commercial Lending
February 8 & 9: TBA Barrett Training Center, Nashville
Early Registration Deadline: January 24

This two-day workshop will focus on the concepts and techniques of commercial lending. Participants will develop the ability to use financial information to make credit decisions and to structure loans properly. Discussion will cover the techniques that help identify the underlying business reasons for borrowing.

Click here to register.


The Southeastern School of Advanced Commercial Lending
February 5-7: TBA Barrett Training Center
Early Registration Deadline: January 16

The Southeastern School of Advanced Commercial Lending is an intensive three-day school focusing on new approaches to managing problem loans and portfolio credit risk, commercial real estate lending, pricing for profitability, and advanced cash flow and loan structuring.

Click here to register.

Financial PSI This Week: Robbery Prevention

There has been a significant increase in robberies of community banks in certain geographic locations. Some community banks are resorting to using "controlled access" for customer entry into the bank. While you may not always be able to prevent a robbery, you can take steps to help make your bank less of a target and protect employees in the process.

Enhancement Suggestions
The Vault

  • Use safe deposit boxes to spread excess vault cash into smaller increments.
  • Place a 15-Minute Delay Time Lock on the cash vault if possible.

The Teller Line

  • Cash recycler machines (CRM) can help to reduce the amount of cash exposed to a robbery. Many CRMs have a built-in “robbery mode” feature. If the teller activates the feature, the CRM will dispense a predetermined amount of cash and automatically shut down for approximately 20 minutes.

The Building

  • “All Clear/Morning Glory Procedures” should be implemented at all locations. They should be reviewed and changed regularly so potential robbers have a more difficult time following your routine.
  • Camera positions should allow clear view of people’s faces entering and exiting the bank. In addition, a camera should also be placed in a position to give a clear view of the parking lot.

The Front Door

  • Publicize (signs on the main entrance) the usage of Cash Recyclers, 15-Minute Delayed Time Locks and cameras.

Your Employees

  • Until someone is faced with a robbery scenario, it’s hard to know how they will react. The best way to keep calm during the situation is to review and rehearse robbery procedures.

If you have any questions and to make sure you are covered, please contact Jon Goodson or Ted Frizen.

Welcome New TBA Associate Member

TBA welcomes new associate member Retriever Payment Systems in the category of processing services, bringing the count to 208 TBA Associate Members. Please thank this company for their support of the Tennessee banking industry through membership. When evaluating vendor partners, review the list of all TBA associate members in our online directory.

2018 renewals for Associate Membership is currently underway and closes February 1. Members can renew online here.

TBA Welcomes Sheena Frech to Education Department

TBA is excited to introduce Sheena Frech to our education department. Frech, who will serve as an education coordinator, recently left the classroom as a public education teacher after 11 years. Frech graduated from Middle Tennessee State University in 2006 with a bachelor's degree in education. She lives with her husband, Jason, and their two children, Grayson and Ellie Kate, in White House, Tenn. "I am honored and excited to become a part of the TBA family,” said Frech. “I look forward to meeting and working with our state’s great bankers."

TBA On the Road

  • The second regular session of the 110th Tennessee General Assembly convenes Tuesday, Jan. 9.
  • Amy Heaslet and Stacey Langford begin reporting daily to the State Capitol for TBA advocacy.
  • TBA welcomes students from UT-Martin on Friday that will be studying the economic impact of banks in Tennessee.

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