2023, Compliance and FDIC - Community Banking Brief

FDIC Digital Sign Requirement Deadline Fast Approaching – Part 1 of 2

Perficient

OCTOBER 1, 2024

Just before Christmas in 2023, December 23, 2023, to be precise, the Federal Deposit Insurance Corporation (“FDIC”) Board of Directors gave a Christmas gift that was the equivalent of coal in their stocking. Banks will also be required to display the FDIC official digital sign on certain automated teller machines.

FDIC

FDIC User Experience Mobile Meeting

FDIC Releases Latest Information Regarding the Deposit Insurance Restoration Plan

Perficient

DECEMBER 29, 2023

Since that blog was published, the FDIC has issued an update on its Restoration Plan for the Deposit Insurance Fund (DIF). The Federal Deposit Insurance Act (FDI Act) requires the FDIC Board to adopt a restoration plan when the DIF’s reserve ratio—the ratio of the fund balance relative to insured deposits—falls below 1.35

FDIC

FDIC Leadership Compliance US

FDIC’s New Banker Engagement Site (BES): Improving CRA & Compliance Exam Communication

Perficient

SEPTEMBER 11, 2023

This month, the Federal Deposit Insurance Corporation (FDIC) launches it new Banker Engagement Site (BES) through FDIC connect. Already reviewed by Perficient, BES provides a secure and efficient portal to exchange documents, information, and communications for consumer compliance and Community Reinvestment Act (CRA) examinations.

Compliance

Compliance FDIC Tools Leadership

Webinars

Back to Basics with Reconciliations

MORE WEBINARS

Compliance changes to watch in 2023

Independent Banker

DECEMBER 31, 2022

While the pace of bank regulatory changes has diminished from a few years ago, several issues will either become effective or likely develop in 2023. 1, and applicable to the first quarterly assessment period of 2023 with an invoice payment date of June 30, 2023. Source: FDIC. Finalization is expected as early as 2023.

Compliance

Compliance FDIC Community Bank Community

5 Banking Trends We’re Forecasting for 2023

Perficient

JANUARY 25, 2023

2023 has commenced, and rates are climbing, inflation is bubbling, and banking customers are continuing to demand hyper-personalized products and experiences from their institutions. Here are five banking trends we’re forecasting for the new year. Banks are focused on efficiency initiatives to optimize their operations and lower costs.

Banking Trends

Banking Trends Trends United States FDIC

Lessons Learned From the Fourth United States Bank Failure of 2023

Perficient

AUGUST 16, 2023

A rather small bank, as of the end of its first quarter, the bank reported $139 million in total assets and $130 million in total deposits in its FDIC Call Report. Herndon named the Federal Deposit Insurance Corporation (“FDIC”) as receiver, allowing the FDIC to take control of the Heartland Tri-State’s operations.

United States

United States Kansas FDIC Risk Management

New issue of FDIC Consumer Compliance Supervisory Highlights looks at referral arrangements, trigger leads, servicemember protections, fair lending compliance

CFPB Monitor

APRIL 12, 2023

In the March 2023 issue of Consumer Compliance Supervisory Highlights , the FDIC discusses consumer compliance issues identified by its examiners during supervisory activities conducted in 2022 involving referral arrangements, trigger leads, servicemember protections, and fair lending compliance.

Compliance

Compliance FDIC Lending Trends

AI Regulations for Financial Services: FinCEN

Perficient

OCTOBER 30, 2024

In April 2021 a Statement and separate Request for Information on Model Risk Management was issued by FinCEN and the FDIC, Federal Reserve, NCUA, and OCC.

Regulation

Regulation FDIC Compliance Innovation

Understanding U.S. Regulator’s Proposed Extended Comment Period

Perficient

DECEMBER 21, 2023

Earlier this year, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Fed), and the Federal Deposit Insurance Corporation (FDIC) unveiled a proposed rule that would reshape the landscape for certain financial institutions. Email: Send your comments to regulationshelpdesk@gsa.gov.

DC

DC FDIC Washington Compliance

FDIC consent order with Cross River Bank indicates heightened scrutiny of bank-fintech partnerships

CFPB Monitor

MAY 4, 2023

The FDIC recently announced that it has entered into a Consent Order with Cross River Bank (CRB or Bank) to resolve FDIC charges that the Bank engaged in unsafe or unsound practices related to its fair lending compliance. (The The Consent Order was issued in March 2023 but not made public until the end of last month.) .

FDIC

FDIC Compliance Fintech Lending

Acquisition and integration considerations for banks in 2024

Abrigo

JANUARY 24, 2024

Account for the details before your FDIC bank acquisition Consider these tips for assessing your institution and a to-be-acquired institution for a smooth integration You might also like this webinar, "Valuation and purchase accounting: Navigating the changing M&A landscape."

FDIC

FDIC Regulation Strategy Data

CECL implementation: Survey shows where peers are as 2023 nears

Abrigo

NOVEMBER 9, 2022

Financial institutions work to meet Q1 2023 CECL deadline A CECL implementation survey by Abrigo found progress by financial instittuions is mixed ahead of the upcoming deadline. . In many cases, financial institutions adopting CECL for the 2023 deadline are tracking ahead of where SEC registrants were as they faced a 2020 deadline.

Survey

Survey Software Resources Meeting

FDIC reports bumpy 4Q for banks, warns of credit risks ahead

American Banker

MARCH 7, 2024

Net income at the nation's more than 4,000 banks dipped markedly in the final quarter of 2023, though for the full year it exceeded pre-pandemic averages. Deterioration in commercial real estate and credit card lending is a concern, FDIC Chairman Martin Gruenberg says.

FDIC

FDIC Report Lending National

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. It had $447 million of assets and $121 million of equity at September 30, 2023.

Fresno

Fresno North Carolina Raleigh FDIC

Joint Guidance Provided to Banks to Manage Risks Associated With Third-Party Relationships

Perficient

JULY 12, 2023

Often an organization will have a state-charted non-member bank, which has the FDIC as its primary federal regulator. The guidance emphasizes that using third parties, especially those using new technologies, may present elevated risks to banking organizations and their customers, including operational, compliance, and strategic risks.

Management

Management Risk Management Regulation Compliance

Uninsured deposits, not brokered deposits, led to 2023 bank failures

American Banker

AUGUST 8, 2024

s focus on implementing stricter control over brokered deposits is misguided, a former chairman on the agency writes, and misses the real lessons of 2023's bank failures. The Federal Deposit Insurance Corp.'s

FDIC

FDIC Community Bank Community Compliance

FDIC OIG says lax lending, poor risk management led to Iowa bank failure

American Banker

MARCH 22, 2024

The FDIC Office of Inspector General attributed the downfall of Citizens Bank in November 2023 to lax lending practices and risk mismanagement by the Lange family, causing a $14.8 million loss to the regulator's Deposit Insurance Fund. The OIG saw no grounds for a more extensive review.

FDIC

FDIC Risk Management Iowa Lending

BaaS Banks Are in Time Out, and Here’s Why It’s a Big Deal

Gonzobanker

JUNE 14, 2023

Cross River Bank recently found itself in hot water with the FDIC when the agency declared that the bank engaged in unsafe or unsound banking practices in relation to its compliance with fair lending laws and regulations, specifically the Equal Credit Opportunity Act and the Truth-in-Lending Act. In effect, Cross River is in time out.

Compliance

Compliance FDIC Strategy Fintech

Retail Deposits: Analyzing Deposit Stickiness in the Current Interest Rate Environment

Perficient

NOVEMBER 17, 2023

Retail Deposits Defined The FDIC classifies retail deposits as demand or term deposits placed within an FDIC-supervised institution by a retail customer or counterparty, excluding brokered deposits. 2Q 2022, first quarter 2023) and upward (3Q 2022) far more sharply than retail deposits.

Retail

Retail FDIC Risk Management Management

Transaction Accounts: Analyzing Deposit Stickiness in the Current Interest Rate Environment

Perficient

NOVEMBER 10, 2023

In the first quarter of 2023, these balances plunged over 40% due to reported U.S. In table form, transaction account balances declined by almost 30% in the second quarter of 2022 as interest rates began to rise, later moderating in the latter half of the year. bank failures but rebounded in the second quarter.

Risk Management

Risk Management United States FDIC Compliance

OCC issues final CRA rule (but FDIC takes a pass)

CFPB Monitor

MAY 22, 2020

Although the OCC’s proposed revisions were issued jointly with the FDIC, the FDIC did not join in the final rule. The final rule is effective October 1, 2020 but sets mandatory compliance dates based on the applicable performance standards. The final rule applies to national banks and federal savings associations.

FDIC

FDIC Lending Retail Compliance

FDIC examiners may need higher pay, freer voice to bolster supervision

American Banker

JULY 7, 2023

The FDIC's New York regional office faced staffing shortages throughout its supervision of now-failed Signature Bank. Experts say more competitive wages, culture shifts and whistleblower protections could help regulators attract and retain talent and improve oversight.

FDIC

FDIC New York Regional Regulation

U.S. Regulators to Bank Boards: “Debt is Good”

Perficient

SEPTEMBER 6, 2023

RELATED CONTENT : Regulatory Risk and Compliance in Financial Services Share Your Thoughts With OCC Regulators by November 30, 2023 You may submit comments to the OCC by any of the methods set forth below. Comments must be received on or before November 30, 2023. These requirements, with a balance sheet depletion allowance of 0.5

Regulation

Regulation DC Capital Washington

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

Abrigo

DECEMBER 22, 2023

The most-read portfolio risk blogs in 2023 Probability of default, CECL model validation, and stress testing were among Abrigo's top blogs on ALM, CECL, and portfolio risk this year. Here are Abrigo’s 10 top ALM, CECL, and portfolio risk blogs in 2023. Click the header next to each number to visit the corresponding top blog post.

Risk Management

Risk Management Regulation Management Lending

FDIC admits oversight shortcomings in First Republic Bank's collapse

American Banker

SEPTEMBER 8, 2023

The Federal Deposit Insurance Corp. acknowledges in a new report that it didn't adequately monitor First Republic Bank's uninsured deposits, interest rate risk sensitivity and rapid growth — and as a result left the bank vulnerable to contagion.

FDIC

FDIC Report Compliance Regulation

Effective CECL model validation: A framework

Abrigo

AUGUST 7, 2023

As the Interagency Policy Statement on Allowances for Credit Losses in April 2023 states: In reviewing the appropriateness of an institution's ACLs, examiners may….[v]erify Review CECL model documentation for compliance with guidelines provided by model risk management.

Risk Management

Risk Management Handbook Analysis Management

FDIC's McKernan questions rationale behind Basel endgame standards

American Banker

OCTOBER 4, 2023

Federal Deposit Insurance Corp. Board Member Jonathan McKernan raised concerns Wednesday over his agency's justification for imposing higher capital on banks, saying they could give nonbanks a more competitive edge in certain activities.

FDIC

FDIC Capital Policies Compliance

There is no need for the FDIC to tinker with its brokered deposits rule

American Banker

SEPTEMBER 11, 2023

Brokered deposits had nothing to do with this year's bank failures, and regulators shouldn't pretend otherwise.

FDIC

FDIC Regulation Compliance

New CECL Excel SCALE Tool from Federal Reserve

Abrigo

JULY 26, 2021

They also said it doesn’t ensure compliance with U.S. This is particularly important during periods in which the economic environment is rapidly changing. R egulators noted during the webinar that SCALE is neither an expected method nor a safe harbor. NCUA officials were not included in the SC ALE webinar.

Tools

Tools Kansas City Kansas Regulation

7 Possible Causes of SVB Failure and Predicting the Impact on Regulatory Reporting

Perficient

MARCH 22, 2023

Shown below is the 56% increase in FDIC and state bank regulator assessment charges. While certain members of Congress seem to have made up their minds, let’s see if the facts get in the way: As shown above, the total compensation and benefits cost per employee fell by more than 20% in 2022. But the fault is the regulators’, right?

Report

Report Regulation Capital Management

FDIC seeks buyers for $18.5 billion of Signature Bank loans

American Banker

JULY 28, 2023

The Federal Deposit Insurance Corp. this week launched the sale of an $18.5 billion loan portfolio from the failed bank, a pool of debt tied to major private equity and investing firms.

FDIC

FDIC Compliance Regulation

Acquire or Be Acquired 2024: A Race to Perform … and Earn the Right to Transform

Gonzobanker

FEBRUARY 1, 2024

The FDIC Approved This Ad How many times did we hear a speaker admonish the audience to “be sure and sign up for the FDIC notification list.” M&A Dynamics Last year, we left AOBA noting that most bankers were optimistic about deals picking up later in 2023 and that the chances of a raging 2024 were strong. Five Hundred? (Oh

Conference

Conference FDIC Arizona Industry

Banks face stricter long-term debt, living-will mandates under FDIC plan

American Banker

AUGUST 29, 2023

The Federal Deposit Insurance Corp. has issued proposals that would make banks with $100 billion of assets or more hold more long-term debt as a cost buffer in the event of a collapse and meet new planning requirements in case they ever have to be resolved in an emergency.

FDIC

FDIC Meeting Compliance Regulation

Gruenberg: Basel proposal is imminent, could cover more midsize banks

American Banker

JUNE 22, 2023

FDIC Chairman Martin Gruenberg announced that regulators will soon issue a proposed rule to finalize U.S. implementation of the most recent revisions to the Basel III capital framework. Among the expected updates are changes to capital requirements for banks with assets of more than $100 billion, three of which failed this spring.

FDIC

FDIC Capital Regulation Policies

FDIC proposes special assessment to replenish deposit insurance fund

American Banker

MAY 11, 2023

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FDIC

FDIC Compliance Regulation

Warren urges FDIC to reject plan to pay assessment fee with Treasuries

American Banker

MAY 19, 2023

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FDIC

FDIC Policies Compliance Regulation

The Fed's $4 billion gift to Silicon Valley Bank's bondholders

American Banker

JANUARY 16, 2024

The Federal Reserve's inexplicable failure to enforce rules requiring Silicon Valley Bank Financial Group to serve as a "source of strength" for its subsidiary saddled the FDIC with billions in extra losses.

FDIC

FDIC Groups Policies Compliance

FDIC's Hill: Agency should have tried harder to sell Silicon Valley Bank

American Banker

JUNE 12, 2023

Federal Deposit Insurance Corp. vice chair Travis Hill said Silicon Valley Bank's failure raises concerns over the resolution process, and said regulators should work harder to find a buyer for distressed banks in the future.

FDIC

FDIC Regulation Policies Compliance