Oklahoma Bankers Association We make bankers better!
In This Issue…
- From Adrian’s desk …
- CFPB proposes new Sec. 1071 rule
- Data shows regulatory burden hits community banks
- Agencies release CRA data on small-business, small-farm lending
- OBASCO roundup: Record Retention Guide receives update; new sales rep with Transfund
- ACH authorization form for OBA dues drafts available
- OBA education corner …
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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I’m keeping it short today as I’m in the middle of back-to-back conferences this week down in Florida. One is with the GSB-Wisconsin board and the other is with the ABA. It should be a lot of info to pack in over five days!
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Nebraska football was on an off-week last weekend, but you know who wasn’t? Nebraska men’s basketball! The ‘Huskers took down Oklahoma in a defense-optional game on Saturday night, 105-99! The OU men’s basketball team should probably get some defensive pointers from their football counterparts, don’t you think?
CFPB proposes new Sec. 1071 rule
The Consumer Financial Protection Bureau proposed a new Sec. 1071 rule last week to replace a Biden-era final rule that led to some association’s challenging it as regulatory over-reach.
Issuance of the new proposed rule is a major victory for community banks and small businesses that would have been subjected to compliance with an 888-page rule and its collection of 81 data points concerning small-business lending. Along with Texas-based Rio Bank, a community bank and minority depository institution based in McAllen, Texas, the Texas Bankers Association filed suit against the CFPB in April 2023 challenging the Sec. 1071 Final Rule. In May 2023, the American Bankers Association joined as a co-plaintiff. Several other trade groups later intervened in opposition to the rule as well.
Data shows regulatory burden hits community banks
Ten years of survey data from banks show that the cost of regulatory compliance eats up a larger percentage of resources for smaller community banks than it does for larger banks, according to a recent report by the Conference of State Bank Supervisors.
For more than a decade, CSBS has surveyed community banks every year on a wide range of issues. A recent analysis of survey data from 2015 to 2024 found that the smallest banks reported spending roughly 11% to 15.5% of their payroll on compliance tasks, compared with 6% to 10% at the largest institutions. The pattern held true for various compliance areas – for example, accounting and auditing expenses devoted to compliance ran 5 to 17 percentage points higher for smaller institutions during the time period studied.
Agencies release CRA data on small-business, small-farm lending
The total number and value of small-business and small-farm loans made by financial institutions subject to the Community Reinvestment Act increased in 2024 compared to the previous year, the Federal Reserve, FDIC and Office of the Comptroller of the Currency said in their annual report on CRA lending data released last week.
A total of 731 lenders reported data about originations and purchases of small loans — $1 million or less — to businesses and farms in 2024, according to the joint agency report. The agencies noted that CRA data provides a useful snapshot of lending to small businesses and small farms, but it is not meant to be comprehensive.
About 9.1 million small-business loans totaling nearly $276.6 billion were reported in 2024. The total number of loans increased by 8.1% from 2023, while the number of loans originated rose by 8.3%. The dollar amount of small-business loans originated rose by 6.1%.
As for small-farm loans, about 197,000 small-farm loans were reported for 2024, totaling about $14.5 billion, an increase of about 0.5% in the number of loans and 4% in the dollar amount of loans in 2024 from 2023.
OBASCO roundup: Record Retention Guide receives updates; new sales rep with Transfund
Updates have been added to Oklahoma Record Retention Guide and it is and now available for purchase in print!
No more having to log into a portal – you can flip through the pages, make your own notes, highlights, etc.! This unique guide is designed to be a quick and easy-to-use reference on the most common types of records that banks encounter.
Additionally, OBA’s endorsed vendor Transfund has a new local sales rep to serve our members: Stephanie Hill. Please contact her for any card processing needs!
Contact: Stephanie Hill, VP Senior Sales Executive
One Williams Center, 22nd Floor
Tulsa, OK 74172
Phone: (405) 388-0837, Helpdesk: (800) 588-6816, ATM Helpdesk: (833) 250-8577
Email: stephanie.hill@transfund.com
Website: www.transfund.com
ACH authorization form for OBA dues drafts available
Just a notice that OBA’s dues letters and invoices have been sent. For those banks who would like to have their dues drafted via ACH, but we do NOT yet have their authorization form to do so, please download this form and return it to Kathryn Donovan at the OBA.
Thank you!
OBA education corner …
Some of us got together this past weekend and watched the sequel to the all-time comedy classic This Is Spinal Tap. You know what? It actually worked! Was it as good as the original? Of course not. Was it an epic disaster like Blues Brothers 2000 or other long-gestating sequels to comedy classics? Heck, no! At the very least, we were able to enjoy classic and hilarious songs like Stonehenge and Gimme Some Money again. So, while you avoid having your drummer die in some bizarre accident, make sure you take a little time to keep up with what’s happening on the continuing education front, including the following:.
- CRE Lending: Cash Flow Analysis and Cap Rates, Nov. 24, webinar — This program covers the key variables and concepts for determining commercial real estate cash flow and transaction-level stress-testing.
- BSA Reporting and Training for the Board, Dec. 2, webinar — BSA officer communication with the board starts with effective initial and ongoing training.
- Most Common TRID Issues, Dec. 3, webinar — Learn to reduce the risks of noncompliance as we explore TRID hot spots, gray areas and frequently-violated provisions.
- Understanding the Role of the Notary Public, Dec. 3, webinar — In this webinar, you’ll learn about notary public responsibilities and notarial acts, basic laws and liability.
- Mobile Banking Compliance Considerations, Dec. 4, webinar — Let’s detail the do’s and don’ts of implementing and operating mobile banking services, review what the examiners are looking for in your program, and provide you with sample language for your risk assessment and policies.
- Cybersecurity: C-Suite and Board Oversight, Dec. 4, webinar — The Gramm-Leach-Bliley Act of 1999 requires all financial institutions to implement an information security program commensurate with their size, complexity and use of technology. This became a responsibility of the board and C-suite.
- Stablecoins CONTINUED: What the GENIUS Act Means for Your Financial Institution, Dec. 5, webinar — Stablecoins were just signed into U.S. law – financial institutions are now in the game. Reserve your spot today and start your journey to becoming a GENIUS about stablecoins!