Week of April 1

In This Issue…

From Adrian’s desk …

By Adrian Beverage
OBA President & CEO

Just some random tidbits that might be of interest to our bankers this week!

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The Bankers’ Night Out event in Krebs last night went well, despite storms all in the area. In fact, a severe thunderstorm warning was announced for Pittsburg County right near the time we were leaving! Still, the event was a resounding success – as were the Tulsa and Oklahoma City ones last week – and we look forward to the final two stops in Enid and Guymon.

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With the first deadline day behind us, things were relatively quiet at the state Capitol last week. Here’s our tracking list of bills we continue to monitor as the session enters its final full month.

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I was in Krebs for Bankers’ Night Out when it was actually taking place, but I understand the Caitlin Clark/Angel Reese/Iowa/LSU duel last night was incredible! I’ve watched Clark light up my Cornhuskers a couple of times this season, so I know of what she is capable, and it doesn’t seem she disappointed against LSU. My humble suggestion for sports fans out there: check out the women’s Final Four this coming weekend, with the likes of Clark and UConn’s Paige Bueckers – you won’t be disappointed!

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OBA, ABA, other state associations ask CFPB to stop overdraft proposal

Warning that “consumers will lose” if the CFPB’s overdraft proposal is finalized, the OBA, American Bankers Association and all 51 other state bankers associations urged the Consumer Financial Protection Bureau via a joint comment letter on Monday to withdraw it.

The proposal would re-classify overdraft as “credit,” despite Congress’ determination 50 years ago to the contrary, and would permit financial institutions to offer overdraft under the existing Regulation E framework only if their overdraft fee is below a “breakeven” fee or a “benchmark” fee set by the agency. Charging a fee that exceeds this government price cap would subject overdraft services to the requirements of the Truth in Lending Act and Regulation Z.

The associations noted that if finalized, the proposal would lead many banks to stop offering—or significantly reduce access to—overdraft, depriving consumers of a valued and needed form of short-term liquidity. The groups warned that banks that continue to offer overdraft under this framework may reduce or eliminate pro-consumer overdraft features like grace periods and de minimis thresholds for charging an overdraft fee.

While the proposal purports to only apply to banks and credit unions with more than $10 billion in assets, the groups emphasized that all depository institutions and their customers will be affected, as all will face market pressure to confirm their overdraft practices with the rule. The groups further noted that TILA provides the CFPB with no authority to engage in this arbitrary line-drawing.

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Preliminary injunction issued against new CRA rules

A federal judge in Texas issued a preliminary injunction on Friday against the enforcement of revised rules implementing Community Reinvestment Act.

The American Bankers Association, the Independent Community Bankers of America, the U.S. Chamber of Commerce, the Texas Bankers Asociation, alongside three other national and state associations, sued banking agencies in February for exceeding their statutory authority with their recent amendments to final rules implementing the CRA.

In a lawsuit filed in the Northern District of Texas, the groups asked the court to vacate the rules. They also sought a preliminary injunction preventing the agencies from enforcing the rules while the court decides the merits of the case.

District Court Judge Matthew Kacsmaryk on Friday granted the plaintiffs their request to pause implementation of the rules while the case moves forward. Among other things, Kacsmaryk said the plaintiffs had shown that banks would incur substantial and unrecoverable costs if the rules were to be enforced only to be struck down at a later date.

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Publicize your promotions, hires!

The OBA runs a monthly “Oklahoma Bankers” feature in its newspaper where promotions and hires from member banks are highlighted. While the submissions seem to come in giant clumps during parts of year, forcing some to be pushed back a couple or even three months to be published, we appear to be between said “giant clumps.” Now is the time to get to the front of the queue to get your bank’s employees featured!

Simply said a short write-up of the hire and/or promotion, along with a head-and-shoulders photo to Jeremy in our communications department!

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Welcome, new strategic members, endorsed vendor

The OBA wishes to welcomes its newest strategic members and latest endorsed vendor:

DDI Technology
DOI Technology provides automotive title management services to lenders across the country. As Oklahoma adopts electronic lien and title, DOI can partner with banks to allow for easier processing and management of the titles. DOI Technology operates in all 50 states.
Contact: Anthony Lipinski
1 Wellness Blvd, Suite 201
Irmo, SC 29063
Phone: (803) 587-5860
Email: anthony.lipinski@dditechnology.com
Website: www.dditechnology.com

Nexus Legal, LLP
Nexus Legal LLP is a corporate law firm that provides legal services to banks in various areas. We advise and represent banks on commercial and consumer loan transactions, syndicated lending arrangements, Fin Tech partnership, swaps and loan participations, and bank regulatory matters. Our attorneys have extensive experience working with financial institutions to navigate complex legal issues and ensure compliance with applicable laws and regulations.
Contact: David S. Randolph
110 S. Hartford Ave.
Tulsa, OK 74120
Phone: (539) 525-9196 Cell: (918) 261-8834
Email: david@nexuslegal.pro
Website: www.nexuslegal.pro

Endorsed Vendor: Profit Resources Inc. (PRI)
Profit Resources, Inc. (PRI) enhances interchange income and debit card profitability, evaluates and negotiates system contracts, and completes process improvement throughout every area of the bank. PRI strengthens banks by making quantifiable improvements to profitability and efficiency while also specializing in merger integration.
Contact: Brady Chianciola
320 S Madison Ave
Monroe, GA 30655
Phone: (800) 576-2374 (413) 544-1584 (Cell)
Email: bchianciola@profitresources.com
Website: profitresources.com

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OBA education corner …

We hope everyone weathered the storms on Monday! Wall-to-wall weather coverage always lets us know it’s springtime in Oklahoma! While keeping an eye on that weather radar, take a little the time to check out our upcoming continuing education opportunities!

  • Understanding Dormant Accounts and the Escheatment Process, April 9, webinar — Dormant accounts often take a backseat to more pressing compliance matters until that one time each year comes when you are required to report this inactivity and transfer any assets to your state through the escheatment process.
  • Top 15 Issues in HMDA Data, April 11, webinar — With the massive 2018 modifications to HMDA, many institutions are still dealing with the challenges of collecting data under the burdensome new requirements.
  • 2024 BSA Fundamentals, April 16-Tulsa, April 17-Oklahoma City — This workshop will provide current, updated tools, techniques, and “real world” examples for learning the critical components of a BSA/ AML program.
  • TRID A-Z All-Day Live Streaming, April 17, webinar — Spend a full day learning about TRID from A to Z. This is a great way to expand your knowledge and take TRID compliance to the next level for your institution.
  • 2024 Rural Bankers/Ag Conference, April 18, Oklahoma City — Learn about the issues ag lenders currently and might face going forward!
  • ACH Basics for Operations Staff, April 18, webinar — Do you need help understanding the ACH Rule Book? If you are new to operations or just want to confirm you really understand ACH, this course is for you.
  • Cash Flow Analysis, April 22, webinar — In this webinar, you’ll learn the fundamentals of constructing and analyzing direct and indirect cash flow statements in order to enhance the quality and effectiveness of the entire credit decision process.
  • 2024 Frontline Excellence (formerly known as “Essential Teller Issues”), April 22-Oklahoma City, April 23-Tulsa, April 24-Enid — This program serves as an important reminder about the significance of their role, serving as the CEOs of the customer experience and reinforcing the importance of their actions and reactions as a reputation builder for your brand

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