Capital, Community, Compliance and FDIC

FDIC Final Rule Sets Community Bank Leverage Ratio at 9%

ABA Community Banking

SEPTEMBER 17, 2019

The FDIC today approved a final rule allowing community banks with a leverage capital ratio of at least 9% to be considered in compliance with Basel III capital requirements and exempt from the complex Basel Calculation.

Community Bank

Community Bank FDIC Community Capital

Community Bank Outlook: Challenges and Opportunities in 2021 and Beyond

Abrigo

AUGUST 6, 2021

How can community financial institutions thrive in 2021? Community banks provide unique and important banking services for their customers, but they also face significant obstacles. Takeaway 1 Community banks play an important role in the economy and their communities, but they face significant obstacles.

Community Bank

Community Bank Community Kansas City Lending

Trade Groups Say “No Thanks” to Notion that FDIC Should Consult CFPB Before Approving Bank Mergers

CFPB Monitor

JUNE 13, 2022

One issue raised in the RFI is “to what extent should the CFPB be consulted by the FDIC when considering the convenience and needs factor and should that consultation be formalized?”. The request for information (RFI) included questions related to the agency’s current bank merger review process, and how the process could be improved.

FDIC

FDIC Groups Community Meeting

Webinars

Elevating Accounting Practices: The Power of Outsourcing and Automation in the Digital Age

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The State of Liquidity & Regulation in Banking

South State Correspondent

APRIL 1, 2023

Deposit outflows for the prior week were revised upwards to show a combined decline of $64B, including $185B from community banks—the Fed included a notice with the release stating that data for the week ending March 15 were revised to account for a change in how FDIC bridge banks were incorporated into the community bank data.

Regulation

Regulation Community Bank Community Capital

Compliance burdens: Reducing bank products and services

Abrigo

AUGUST 3, 2015

According to a recent survey by the American Bankers Association (ABA), more than 46 percent of respondents had to reduce offerings for loan or deposit accounts, or other services, at their bank because of regulatory compliance burdens. A recent Forbes commentary, Dodd-Frank, Community Bank Decline, And The Effect On U.S.

Compliance

Compliance Community Bank Community Survey

The role of bank directors in managing risk

Abrigo

APRIL 12, 2016

The FDIC is offering a fresh take on how a bank’s board of directors should understand and manage risk. The regulator’s April edition of Supervisory Insights provides what the FDIC called a “refresher” on its Pocket Guide for Directors, the 1988 booklet outlining the basic duties and responsibilities of a bank’s board of directors.

Management

Management FDIC Risk Management Community Bank

Regulation and Compliance: Ready for Review

Independent Banker

SEPTEMBER 25, 2014

Anticipating what’s new for your community bank’s next field examination. This is particularly true for community banks preparing to undergo their next regulatory safety and soundness or compliance examination. By Karen Hoffman. Benjamin Franklin famously said that “by failing to prepare, you are preparing to fail.”

Compliance

Compliance Regulation Community Bank Community

Banking's Top 5 Total Return to Shareholders: 2023 Edition

Jeff For Banks

DECEMBER 10, 2023

Although one might argue that First Citizens BancShares of Raleigh is a SIFI as it climbed to the 19th largest in the country with its Silicon Valley Bridge Bank acquisition from the FDIC, and that the FDIC designated SVB as systemically important. Total return includes two components: capital appreciation and dividends.

Fresno

Fresno North Carolina Raleigh FDIC

FDIC Issues Coronavirus-Related FAQs for Banks, Consumers

ABA Community Banking

MARCH 19, 2020

The FDIC today issued two sets of frequently asked questions addressing banker and consumer concerns related to the coronavirus pandemic. The post FDIC Issues Coronavirus-Related FAQs for Banks, Consumers appeared first on ABA Banking Journal.

FDIC

FDIC Community Bank Policies Capital

CFPB and federal banking agencies issue joint statement encouraging small-dollar loans in response to COVID-19 outbreak

CFPB Monitor

MARCH 26, 2020

The CFPB, OCC, FDIC, Federal Reserve, and NCUA have issued a joint statement “to specifically encourage” banks, savings associations, and credit unions “to offer responsible small-dollar loans to both consumers and small businesses” in response to the COVID-19 outbreak. For example, what rates will the agencies view as “responsible”?

FDIC

FDIC Lending National Examples

Capital and More of It!

Jeff For Banks

JULY 20, 2012

The regulatory definition of "well capitalized" has not changed post financial crisis. Tier 1 leverage ratio: 5% Tier 1 risk-based ratio: 6% Total risk-based ratio: 10% So where is all of this belly aching about capital requirements coming from? A typical article in an RO requires an FI to increase its capital based on perceived risk.

Capital

Capital Regulation FDIC Groups

Who were ICBA’s Top Lenders of 2022?

Independent Banker

JUNE 30, 2022

Last year, community bank loan producers were faced with both record-low interest rates and a glut of deposits. But as they always do, they came through for individuals and businesses in their communities with a combination of personalized service and prudent risk management practices. First Community Bank of the Heartland, Inc.

Community Bank

Community Bank Community National Philadelphia

Bill To Ease Regulation on Smaller FIs Before U.S. House

PYMNTS

MAY 22, 2018

“The bill also gives regulators more discretion in deciding when to require stress tests of capital adequacy for banks with between $100 billion and $250 billion in assets in the event of another crisis,” according to a summary of the bill in MarketWatch. As of late Tuesday afternoon, the bill, which has passed the U.S.

Regulation

Regulation Regional Community Community Bank

Banking's Top 5 Total Return to Shareholders: 2022 Edition

Jeff For Banks

DECEMBER 16, 2022

Total return includes two components: capital appreciation and dividends. Silvergate Capital Corporation (NYSE: SI) #2. The bank consists of two segments: 1) the traditional community bank, and 2) CCBX, which is its Banking as a Service (BaaS) division started in 2018. MetroCity Bankshares, Inc. Nasdaq: MCBS) #3. Refreshing!

Puerto Rico

Puerto Rico Virgin Islands Community Community Bank

The OCC’s CRA final rule: changes and highlights

CFPB Monitor

JUNE 25, 2020

On May 20, 2020, the OCC issued a final rule to “strengthen and modernize” its existing Community Reinvestment Act (“CRA”) regulations. The final rule is effective October 1, 2020 but sets mandatory compliance dates based on the applicable performance standards. This is the second in a series of five blog posts about the final rule.

Community

Community Lending Meeting Retail

CECL implementation: Survey shows where peers are as 2023 nears

Abrigo

NOVEMBER 9, 2022

The Q1 2023 compliance date is near for smaller SEC-reporting financial institutions and private or not-for-profit banks and credit unions, and progress is decidedly mixed, according to the Abrigo 2022 CECL Survey. For community banks specifically, they’re already reserving for a lifetime of credit losses,” he said. keep me informed.

Survey

Survey Software Resources Meeting

Fighting Digital with Digital

Independent Banker

FEBRUARY 24, 2016

Community banks cannot afford to ignore the staggering pace of lending adoption by both individuals and businesses using digital-only platforms from various nonbank technology-based specialty lending firms. But community banks should not be without hope, nor should they underestimate the significance of customer relationships.

Community Bank

Community Bank Community Lending FDIC

CECL down, but not out

American Banker

MARCH 27, 2020

Lawmakers and regulators opted to delay compliance for banks that have implemented the credit loss standard, sparing them near-term capital hits.

Compliance

Compliance Regulation Capital FDIC

Signaling Caution

Independent Banker

FEBRUARY 24, 2016

Just about every community bank makes commercial real estate loans. A whopping 95 percent of ICBA members are active commercial real estate (CRE) lenders, according to the latest ICBA Community Bank Lending Survey. Regulatory oversight is nothing new for Chris Courtney, president and CEO of Oak Valley Community Bank in Oakdale, Calif.

Community Bank

Community Bank Lending Community Regulation

Bankers: Is your strategy the same as your competitor?

Jeff For Banks

MARCH 29, 2014

We believe we can effectively compete as a community bank in our market area and the niche markets we serve. Since the fourth quarter, 2012, we have expanded to serve the small business community by offering loans guaranteed by the Small Business Administration as well as the U.S. Texas Capital Bancshares, Inc.

Strategy

Strategy Texas San Antonio Fort Worth

OptimumBank in Fla. Hit with Consent Order

American Banker

JANUARY 3, 2017

has been hit with an enforcement action due to concerns about its asset quality, capital position, compliance with anti-money-laundering regulations and other issues. OptimumBank in Plantation, Fla.,

Compliance

Compliance Regulation Capital FDIC

The Elephant in the Room: Branches

Jeff For Banks

OCTOBER 13, 2011

The recently released FDIC Summary of Deposits showed the second year of branch decline. This dates back to an interview I did with American Banker about a community FI that was opening coffee shop branches. The community FI may not have this luxury. That''s right. old people letting their fingers do the walking.

Branch Strategies

Branch Strategies New Jersey Strategy Capital

Lack of an M&A Strategy May Leave You Dateless at the Prom

Gonzobanker

AUGUST 22, 2014

While we may see an uptick in the number of new bank charters from the near zero we have today, too many other industries with less regulation will attract capital. Useful filters could include qualities like geography, asset size, branch network, balance sheet mix, capital levels and niche businesses.

Strategy

Strategy United States Community New York City

The most popular CECL, ALM, & portfolio risk blogs of the year

Abrigo

DECEMBER 22, 2023

Read this blog for ten key reports on capital, growth, and liquidity that can help financial institutions identify increased risk and shape strategy in tricky conditions. While this bank had unique loans that most community financial institutions won’t be dealing with, it does raise the question of appropriate stress tests.

Risk Management

Risk Management Regulation Management Lending