Monthly Archives:' September 2014

FDIC Urges Banks to Prep for Cybersecurity

On September 22, 2014 Chairman Gurenberg (FDIC) gave remarks to the American Banker Regualtory Symposium in Arlington, Virginia. Gruenberg named cybersecurity among three concerns facing the industry as banks make the transition into a period of stronger growth and increased lending. The other two are continued risks posed by a changing interest rate environment, and the need for prudent underwriting and risk management despite temptations to cut corners as loan demand rises. In his remarks he called cybersecurity an issue of “highest importance” for the FDIC and discussed the FDIC’s recent initiatives to address cybersecurity as a critical operational risk for large and small banks including: (1) A new framework for conducting IT examinations in partnership with the Federal Financial Institutions Examination Council (FFIEC), including “published standards, examination procedures, routine on-site inspections, and enforcement capability.” (2) The Cybersecurity and Critical Infrastructure Working Group, an inter-agency liaison with law enforcement to help the banking agencies share information, collaborate regarding examination policy, and coordinate responses to cybersecurity incidents. (3) The FDIC “Cyber Challenge,” an online resource designed to help community banks assess their own preparedness to address a cybersecurity incident. (4) A new requirement that community banks’ third-party technology service providers (TSPs) update their client financial institutions on any operational concerns the FDIC identifies at the TSP during an examination.

Chairman Gruenberg also emphasized “In an increasingly interconnected banking environment, Internet cyberthreats are rapidly becoming the most urgent category of technological challenges facing our banks,” he said. “The large number [of] and sophistication of cyberattacks directed at financial institutions in recent years does require a shift in thinking.” 

Internal Revenue Service Publishes Unused LITHC Carryovers

The Internal Revenue Service (IRS) published the amounts of unused low-income housing tax credit (LIHTC) carryovers for calendar year 2014. Allocations were provided to 35 qualifying states and Puerto Rico. Revenue Procedure 2014-52 details how $2.59 million of unused LIHTCs were divided among the recipients. California received the largest allocation of $364,756 in LIHTCs. The unused housing credit carryover amount allocated from the National Pool by the Secretary to each qualified state for calendar year 2014 is as follows:

Alabama 45,996

Arizona 63,056

California 364,756

Delaware 8,809

Florida 186,057

Georgia 95,081

Idaho 15,340

Illinois 122,581

Kentucky 41,824

Louisiana 44,014

Maine 12,640

Maryland 56,416

Massachusetts 63,686

Michigan 94,163

Minnesota 51,578

Nebraska 17,780

Nevada 26,550

New Hampshire 12,593

New Jersey 84,682

New York 186,992

North Carolina 93,710

North Dakota 6,884

Ohio 110,103

Oklahoma 36,640

Oregon 37,397

Pennsylvania 121,550

Puerto Rico 34,400

Rhode Island 10,006

South Dakota 8,040

Tennessee 61,813

Texas 251,670

Vermont 5,963

Virginia 78,603

Washington 66,337

West Virginia 17,645

Wisconsin 54,645

True Friend in Community Banking Web Seminar

Join “A True Friend in Community Banking,” Kennedy Sutherland LLP’s partner, William D. Sutherland, VI, during this insightful interview being hosted by Digital Compliance on Wednesday, October 1, 2014 at 12:00 CDT. In the web seminar, we’ll learn about the history behind William (Dub’s) passion for community banking, the challenges he sees ahead and the opportunities for community banks and bankers willing to adapt and overcome.

Mr. Sutherland will be interviewed by Kelli Schultz, President & CEO, of Digital Compliance. After spending 15+ years working with community financial institutions and other technology vendors at iPay Technologies, Kelli decidedly has a passion for this space. She found her calling when she joined the company that would become iPay in its very early days. When it sold to JKHY in 2010, Kelli was eager to dive back in and lead an early-stage environment. So, when a company born out of necessity at iPay needed to be reinvented Kelli willingly raised her hand to step in as President & CEO.

Register Now

Agencies Request Comment on Community Reinvestment

The OCC, Board of Governors, and FDIC (the Agencies) invited public comment today to clarify and supplement their Interagency Questions and Answers Regarding Community Reinvestment to address issues raised by bankers, community organizations, and others regarding the Agencies’ Community Reinvestment Act (CRA) regulations. The document provides additional guidance to financial institutions and the public on the agencies’ regulations that implement the Community Reinvestment Act (CRA). Among other things, the proposed new and revised CRA questions and answers address community development-related issues by clarifying guidance on economic development; providing examples of community development loans and activities that are considered to revitalize or stabilize an underserved nonmetropolitan middle-income geography; and clarifying how community development services are evaluated.