Tennessee Bankers

This Week Newsletter

April 30, 2018 - Issue No. 1817

110th Tennessee General Assembly Adjourns

The 110th General Assembly concluded last Wednesday at nearly 11:00 p.m. after House and Senate members reached agreements on several controversial pieces of legislation. The last remaining issue between the chambers was how to address the recent problems with the state’s online testing, TNReady, for students. After much political jockeying, members unanimously passed legislation stating that no adverse action can be taken against any teacher, student, school, or LEA as a result of the tests.

In typical end-of-session bickering, the House and Senate also spent their final days clashing over two of Governor Haslam’s top priorities—addressing the opioid epidemic and reforming the juvenile justice system—as well as reauthorization of the Department of Correction and whether parents could be penalized for smoking in cars with children. There was also heated debate over two proposals to amend the Constitution—one that would ban slavery and another to say that liberties derive from God. Both of those failed, with the House blaming the Senate for their failure.

Despite the tensions that rose the last few days of session, members also spent their time jointly recognizing those who chose not to seek re-election and honor the time they spent serving in the legislature.

With the session now concluded and a record number of open seats in the elections, members as well as TBA’s government relations team will quickly shift their focus to the upcoming elections.

Sen. Hatch Calls for Large Credit Unions to File Form 990 with IRS

The largest credit unions should be required to file Form 990 with the Internal Revenue Service, Senate Finance Committee Chairman Orrin Hatch (R-Utah) said in a letter to the IRS’s acting commissioner last Tuesday. Requiring 990s for large and complex credit unions, which is within the discretion of the IRS, would enhance transparency as the credit union business model has significantly evolved, Hatch wrote.

With the exception of credit unions, houses of worship, and the very smallest nonprofits, all tax-exempt entities are required to file 990s annually. The form documents balance sheets, expenses, and officer and board compensation. Credit unions were exempted because of their supervision by the National Credit Union Administration, Hatch noted, but he added that “during that time there is no question that federal credit unions have grown in size and complexity, which should give us pause to reflect whether that exemption is still warranted.” Read the letter.

Treasury Highlights Efforts to Reduce Regulatory Burden

The Treasury Department has eliminated or proposed to eliminate or modify a total of 305 regulations, according to a report released last Tuesday. The report highlights the department’s response to President Trump’s executive orders to reduce or eliminate overly burdensome, duplicative, or unnecessary government regulations.

On net, the department has reduced its regulatory agenda by 94 regulations from its 2016 agenda. In Treasury’s fall 2017 regulatory plan, two regulations were identified as significant regulatory actions, while the remaining items are burden-reducing or have not yet been classified. In addition, Treasury has undertaken a wide-reaching review of its existing regulatory framework and has already proposed to eliminate a number of Internal Revenue Service regulations.

The department has also issued several reports recommending changes to several aspects of the financial regulatory system, including bank and credit union supervision. View the report.

Two Tennessee Banks Announce Deals

Last week Gaylon Lawrence Jr. announced his plans to acquire Portland based Volunteer State Bank. At $623 million in total assets, Volunteer State will maintain its leadership, brand and charter after deal completion. Also announced last week was that The Peoples Bank, based out of Virginia with headquarters operations in Knoxville, will merge with and into First US Bank, Birmingham, Ala. The combined entity will be around $800 million in assets.

Loan Assistants and Loan Processors Workshop Early Registration Deadline Is May 9

This seminar, which takes place May 23 at Nashville's TBA Barrett Training Center, is designed to increase the lending knowledge and administrative effectiveness of one of the most important positions in a community bank’s lending staff—the loan assistant/loan processor. All the objectives of this program are intended to increase the productivity of individuals in these positions.

Discussion Topics
These topics address two items, given the applicant’s loan request:
1. The specific required loan documentation
2. The mandatory items to consider under “fair lending” compliance

  • The loan assistant’s primary role in loan origination
  • and bank profitability
  • The loan assistant’s role in developing and maintaining effective, working partnerships with lenders
  • The loan assistant’s role in compliance with federal lending regulations, including a discussion on the Truth-in-Lending/RESPA disclosures
  • A review of the primary loan documentation for consumer, residential, and small business loans
  • A variety of lending resources to expand the lending knowledge of loan assistants


Click here to register.

Strategic Technology and Operations Conference Photo Recap

The 2018 Strategic Technology and Operations Conference was held April 26-27 with over 130 members participating. View the photo recap here.

TBA On the Road

  • TBA's Amy Heaslet will speak at the South Central Tennessee Development Lender Conference in Manchester.
  • Heaslet will also visit Paragon Bank in Memphis for a BankPac presentation.

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