Visit us online: Website | NCBA LinkedIn | NCEL LinkedIn North Carolina’s Banking Community Connects with State Lawmakers at the 2025 NCBA Legislative Day On Wednesday, banking leaders gathered in Raleigh for the association’s Legislative Day. North Carolina Governor Josh Stein provided the keynote address. Bankers then listened to and posed questions to Representatives Neal Jackson (District 78 / Moore, Randolph) and Stephen Ross (District 63 / Alamance), two of the legislative leaders in the House who chair commerce and finance committees. Upcoming Professional Development: Internal Audit Seminar - May 20-21 Branch Manager Bootcamp - Next Session: May 21 Regulatory Compliance School - Lending: May 5, May 7, May 9 | Deposits: May 15 Regulation E and Payments - June 5-6 Upcoming Annual Conferences: 2025 American Mortgage Conference - May 13-14 2025 NCBA/OBL Annual Convention - June 23-26 2025 North Carolina School of Banking - July 21-25 This was immediately followed by a segment with Senators David W. Craven, Jr. (District 29 / Anson, Montgomery, Randolph, Richmond, Union) and Brad Overcash (District 43 / Gaston) who chair finance and appropriations committees.  We sincerely appreciate these leaders providing their unique perspectives on their vision for our state, the strength of our economy, and banking-related issues. We also would like to thank all those bank leaders who gathered for the meeting and helped to make it so successful.  Thank you for your support in raising the voice of North Carolina's banking industry! Explore Historic Charleston at the American Mortgage Conference | May 13-14, 2025 The American Mortgage Conference brings together decision-makers, investors, top financial leaders, and mortgage practitioners of every kind each year. Join your mortgage community for the chance to dive deep into crucial industry issues and discuss the latest progress from Washington. Don’t miss out on this annual tradition—join us on May 13-14, 2025, in historic Charleston, S.C.! Learn More & Sign Up   State Legislative & Regulatory Update Additional Bills Filed Due to a backlog of bills still being prepared by staff attorneys at the General Assembly, legislators in the House further extended the allowed timeframe for new legislation to be filed. As a result of that action, additional bills of note have been added to our Bill Tracker publication. These include, among others:  H 909 – a bill to create a state infrastructure bank to focus on infrastructure projects H 919 – a bill entitled “Fair Access to Financial Services,” which is highly problematic as filed and which the association opposes H 923 – legislation to redact property addresses and related information from county websites upon request by judicial personnel, which could present challenges in the title search context H 956 – a bill that would impose additional requirements on banks to identify and report patterns of behavior that are materially harmful to the financial well-being of older adults or disabled adults and barring late fees and penalties, including in the context when a person may be receiving cognitive care in an adult care home (perhaps even if the financial institution has no knowledge of such care being provided); it also says that banks can’t charge interest on loans to customers in certain contexts The total bill filing count now stands at 1,771. North Carolina Senate Proposes State Budget Senate leaders released a proposed state budget on Monday of this week as Senate Bill 257 and it passed initial votes, with one additional vote scheduled for Thursday. Legislators will be on a one-week break next week, so it would be the week of April 28 before the House could begin taking any action with regard to the budget proposal. The House may seek to make adjustments to the budget.  With the May 8 crossover deadline – the date by which most bills that do not affect taxes or budget-related matters must pass the chamber in which they were introduced in order to remain active for the remainder of the session – House priorities in the near term may be focused elsewhere. Therefore, it may be some weeks before the budget picture further takes shape.  The Senate budget plan includes spending an additional $700 million for Hurricane Helene recovery.  Federal Legislative & Regulatory Update CFPB Credit Card Late Fees Rule Vacated by Court A federal court has vacated the CFPB’s rule on credit card late fees after the plaintiffs in a lawsuit reached an agreement with the CFPB. Under the terms of the settlement, the CFPB acknowledged it exceeded its authority under the Credit Card Accountability Responsibility and Disclosure Act, and that the late fee rule violates the Administrative Procedure Act.  As background, the CFPB had issued a final rule last year to lower the safe harbor dollar amount for late fees to $8, eliminate a higher safe harbor dollar amount for late fees for subsequent violations of the same type, and eliminate the annual inflation adjustment for the safe harbor amount that was provided by the Federal Reserve in 2010. Resolution to Overturn OCC Final Rule on Bank Mergers Rep. Tim Moore is an original cosponsor of H.J. Res. 92, newly filed legislation that seeks to use the Congressional Review Act to overturn the OCC’s 2024 final rule on proposed bank mergers.  The OCC last year adopted a rule that ended its practice of automatically approving merger applications on the 15th day after the close of the comment period unless the agency takes action to remove the filing for expedited processing. The rule also amended how the OCC considers financial stability, financial and managerial resources, future prospects, and convenience and needs factors.  In the Senate, S.J. Res 13, previously introduced by Sen. John Kennedy (R-LA) and with Senator Thom Tillis as an original cosponsor, also seeks to overturn the OCC rule.  FDIC May Trim Its Workforce The FDIC is looking for ways to cut its workforce by a further 20% as part of an effort to reduce the overall size of government, Bloomberg News has reported.  Bowman pledges to restore regulatory tailoring  Testifying before the Senate Banking Committee, Federal Reserve Governor Michelle Bowman said she will prioritize refocusing bank supervision and restoring regulatory tailoring if the Senate confirms her nomination to be vice chair for supervision.  “[T]o promote accountability, regulators must be transparent—both in supervision and regulation. Successful policymaking requires openness and humility, caution and a deliberate approach,” she added. Electronic Communication as Preferred Method for Supervisory Correspondence  The FDIC has announced that electronic communications is now the agency’s preferred method for supervisory correspondence. The announcement includes an attachment that provides guidance about how to send official correspondence related to supervisory matters to the FDIC using the FDIC’s Secure Email portal. OCC Restructures Departments The OCC has announced an organizational restructuring. It will include combining the Midsize and Community Bank Supervision and Large Bank Supervision functions to create the Bank Supervision and Examination line of business. Greg Coleman, Senior Deputy Comptroller for Large Bank Supervision, will lead the Bank Supervision and Examination office.  The OCC will also reinstate the Chief National Bank Examiner office which will include the divisions of Bank Supervision Policy as well as Supervision Risk and Analysis. Jay Gallagher, the Senior Deputy Comptroller for Supervision Risk and Analysis, will lead the Chief National Bank Examiner Office. Fed Chair Powell Provides Economic Outlook During a speech in Chicago, Federal Reserve Chair Jerome Powell said that the Trump Administration has implemented substantial policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation.  “The level of the tariff increases announced so far is significantly larger than anticipated," he noted.  "The same is likely to be true of the economic effects, which will include higher inflation and slower growth. Both survey- and market-based measures of near-term inflation expectations have moved up significantly, with survey participants pointing to tariffs. Survey measures of longer-term inflation expectations, for the most part, appear to remain well anchored; market-based breakevens continue to run close to 2 percent.” Banker News DC Publication Calls for Elimination of Credit Union Tax Subsidy The Washington Examiner has published an op-ed calling for the elimination of the tax subsidy for credit unions. The article describes the history of credit unions going back to 1934, explains common bond requirements, and then discusses how major legislative changes that occurred in 1998 allowed credit unions to serve multiple industries and communities.  The article gives the example of Lake Michigan Credit Union expanding into Florida, a state more than 1,000 miles away. “Unshackled by the old ‘common bond’ requirement, credit unions have since gone on an expansion and acquisition spree. Over the last decade, while the number of credit unions has actually fallen by 30%, thanks to consolidation, the assets controlled by credit unions have more than doubled from $1.02 to $2.17 trillion. The main vector for credit union growth has been the acquisition of small for-profit community banks. A record 22 tax-paying commercial banks were bought by credit unions in 2024, and over 100 were purchased by credit unions in the past decade.” Did You Know? In Preparation for the Final Rule on CRA Modernization, Banks Need a Solid Foundation for their CRA Compliance Program ICBA CRA Solutions, a Community Bank Services-endorsed vendor, is inviting all North Carolina bankers to a complimentary webinar on May 20 at 10:30 AM! This session will include: strategies for a successful CRA program setting goals for lending investments and services training and CRA exam preparation  Learn how ICBA CRA Solutions' education and training, support services, peer groups, and CRA compliance programs will guide you through optimizing your CRA activities from start to finish. Learn More & Sign Up   NCBA Announcements Centrant Community Capital Celebrates Two Major Milestones This year marks the 35th year of operation for Centrant Community Capital.  Established as a wholly-owned subsidiary of the North Carolina Bankers Association in 1990, Centrant provides permanent mortgage loans to finance affordable multifamily housing.  All of Centrant’s loans are funded by its network of member banks, via voluntary loan-by-loan participation commitments.   In return for participating in a Centrant loan, member banks receive an attractive return via interest income, as well as opportunities for loan portfolio growth and Community Reinvestment Act credit.  In addition to celebrating this noteworthy anniversary, Centrant recently surpassed $500 million in loan originations when it closed a $1,075,000 loan to finance Indigo Townes, a new 60-unit affordable housing community in Florence, SC. To mark the occasion, David Bennett and Rocky Herring visited the development team at Connelly Builders & Development in Lexington, SC, providing lunch for the staff and presenting an award commemorating the milestone. As a special thank you to its bank members, the Centrant team is planning a dessert and cocktail reception during the upcoming joint NCBA / OBL Annual Convention – if you are planning to attend the convention, we hope to see you there! To learn more about Centrant, contact David Bennett at david@centrant.org. Swing for the Future at the 2nd Annual NCBA Foundation Golf Tournament | June 5, 2025 Lace up your golf shoes, grab your clubs, and join us as we swing for a good cause. We're thrilled to announce our upcoming golf tournament, where every drive, chip and putt will make a direct impact on the North Carolina Bankers Association Foundation's mission. Through the NCBA Foundation, experience the joy of awarding scholarship grants to bright, deserving children of employees of North Carolina member banks, paving the way for their success and prosperity. Learn More & Sign Up   Celebrating 50+ Years of Service in North Carolina's Banking Industry NCBA President & CEO Peter Gwaltney paid a visit this week to North State Bank to present NCBA service certificates to Virginia Wyatt for 50 years of service in the banking industry and to Karen Kilmer for 55 years of service. Pictured with Gwaltney, Wyatt, and Kilmer, is North State Bank Chairman, President & CEO, Larry Barbour.  Enroll in the North Carolina School of Banking | July 21 - July 25, 2025 Invest in your banking career with the North Carolina School of Banking, the state’s premier banking school for emerging leaders. Over the course of a full week, students gain in-depth industry knowledge from top banking executives and subject-matter experts, equipping them with the skills needed to excel in an evolving financial landscape. Join us in Boone, NC, from July 21-25, 2025, for an immersive learning experience designed to strengthen your expertise and expand your professional network. We hope to see you there! Learn More & Sign Up   CBS Spotlight Mastering Talent Strategy: How to Achieve Recruitment & Onboarding Excellence CBIZ, our partner for payroll and HR solutions, is hosting a webinar titled Mastering Talent Strategy: How to Achieve Recruitment & Onboarding Excellence, and it’s packed with practical insights to help businesses like yours attract and retain top talent. In this insightful webinar, CBIZ’s experts will explore how to attract and retain top talent beyond just making a great offer. Key topics will include: Streamlining hiring with HR technology and automation Boosting talent attraction with competitive retirement benefits Building a standout employer brand Structuring compensation and total rewards for long-term success By joining this session, you will gain actionable insights that will enhance your hiring processes, improve retention rates, and position your company as an employer of choice. As an added bonus, this program has been pre-approved for 1 HRCI credit! Learn More & Sign Up   Industry Update FirstBank Announces Expansion into North Carolina FirstBank has announced plans to open an office in Asheville, marking its entry into the North Carolina market. The Nashville-based bank currently operates in Tennessee, Kentucky, Alabama, and Georgia. The move follows a $381 million acquisition by parent company FB Financial Corp. (NYSE: FBK), expanding its regional footprint. Andy Nadeau, formerly with Bank of America, will lead the Asheville office as market president. He’ll be joined by Jennifer Arnold and Bryan Boone in commercial banking roles. TD Bank Awards $200,000 grant to Cleveland County Community Development Corporation  TD Charitable Foundation, the giving arm of TD Bank, announced $7.2 million awarded to 36 nonprofits across the bank'sfootprint, including a $200,000 grant to Cleveland County Community Development Corporation located in Shelby as part of its $7.2 million awarded to 36 nonprofits across the bank's Maine to Florida footprint through the 19th annual Housing for Everyone grant program. The grant to Cleveland County Community Development Corporation will support the organization’s Housing Stability Program, which promotes housing stability with financial counseling and home repair to help low and moderate individuals remain housed while navigating challenges like delinquent and rising property taxes and home repairs. This program will foster sustainable behaviors and outcomes by addressing housing issues before a crisis arises. According to TD Bank, the program embodies the Housing for Everyone 2025 focus statement of helping low- and moderate-income individuals and families maintain homeownership. Pinnacle Financial Partners Expands in Concord with New Full-Service Office Pinnacle Financial Partners is expanding its presence in the Concord community with a new full-service financial center located at 871 Church Street North. This office is scheduled to open May 19, replacing both current Concord locations on Copperfield Boulevard and Church Street North.  The new financial center will allow Pinnacle clients significantly improved access to the financial center and to our associates that continue to deliver the firm’s signature client-focused approach to one of the fastest-growing economic hubs in the region, reinforcing the firm’s commitment to serving businesses and individuals in Cabarrus County. “Concord is experiencing tremendous growth, with strong job creation and economic development across multiple industries,” said Katie Elder, area manager at Pinnacle. “Our team is excited to be part of this momentum, helping local businesses and clients thrive with personalized financial guidance and the resources of a top financial services firm.” Art Seaver, Southern First Founder & CEO, Awarded Order of the Palmetto Southern First Bancshares, Inc. (NASDAQ: SFST), holding company for Southern First Bank, recently announced the company's Founder and CEO, Art Seaver, was awarded the Order of the Palmetto, the highest civilian honor given by the governor of South Carolina. The award was presented by Jimmy Orders, Chairman of the Board of Directors, at Southern First’s 25th Anniversary Celebration on April 12.  The Order of the Palmetto is given to individuals in recognition of a lifetime of exceptional achievement and service. It honors those who have made significant selfless contributions to the community, dedicating their time, resources, and goodwill to a variety of causes that benefit their fellow citizens and the prosperity of South Carolina. Words of Wisdom The sun, with all those planets revolving around it and dependent on it, can still ripen a bunch of grapes as if it had nothing else in the universe to do. -  Galileo Galilei NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US If you no longer want to receive emails regarding the NCBankers Bulletin, please profile.